LIVESTOCK HIGHLIGHTS: Top Stories of the Day
07 Abril 2020 - 06:49PM
Dow Jones News
TOP STORIES
Darden, Denny's Say Sales Down Sharply During Coronavirus
Darden Restaurants Inc. and Denny's Corp. said their sales have
plummeted in recent weeks, highlighting the threat casual
restaurant chains face as their dining rooms remain closed amid
restrictions meant to halt the spread of the new coronavirus.
Darden, the operator of Olive Garden and other restaurants, said
Tuesday that comparable sales across its portfolio fell 39% during
the first six weeks of its current quarter, a period that ended
April 5. Comparable sales were down at least 71% for each of the
last three weeklong periods, the company said.
Farmer Sentiment Dives on Coronavirus Concerns -- Market
Talk
16:10 ET - Coronavirus pandemic concerns have farmers on edge
according to the Ag Economy Barometer. The survey, which is jointly
conducted by the CME Group and Purdue University, shows farmer
positivity plummeting 28% from a month ago, when the barometer
reached an all-time high as farmers celebrated the signing of a
trade deal with China and the resumption of exports there. The
barometer is now at its lowest level since Sept. 2019, when farmers
grappled with weak commodity prices and heightened tension with
China. "While originally it was thought that the coronavirus effect
would be limited to trade with China, now it appears producers are
bracing for challenging financial times leading into the 2020
planting season," says James Mintert, director of Purdue
University's Center for Commercial Agriculture.
(kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST
Corn Clips Seven-Session Slide
Corn for May delivery rose 1.1% to $3.31 1/2 a bushel on the
Chicago Board of Trade on Tuesdad with managed money investors
opting to cash in short positions in corn ahead of Thursday's WASDE
report.
Soybeans for May delivery fell 0.1% to $8.54 3/4 a bushel.
Wheat for May delivery fell 1.2% to $5.49 1/4 a bushel.
WASDE Expected to Loom Large Over Prices Next Week -- Market
Talk
12:09 ET - With the USDA releasing its monthly WASDE report
Thursday, many grain traders are expecting the factors moving
grains futures on a day-to-day basis to shift off
coronavirus-related news and more onto supply and demand
fundamentals in 2020/21. "A major report looms large for Thursday
and that will be the key for prices all next week," says Jerry
Welch of Midwest Market Solutions. Analysts polled by WSJ this week
expect grain stockpiles in the US to rise, while South American
crop production declines--making April's report a mixed bag. CBOT
corn up 1.8% Tuesday, while soybeans climb 0.4% and wheat is down
1.5%. (kirk.maltais@wsj.com; @kirkmaltais)
Poet Confirms Idling of Three Ethanol Plants -- Market Talk
11:17 ET - Ethanol producer Poet says that it will idle
production at its bioprocessing facilities in Chancellor, S.D.,
Ashton, Iowa, and Coon Rapids, Iowa, and delay the start-up of its
new plant in Shelbyville, Ind. in reaction to the effect
coronavirus has had on producer margins and consumer demand. The
stoppages are expected to reduce corn demand by 110M bushels and
reduce ethanol production by 330M gallons, the company says
Tuesday. "Plummeting fuel demand amid the coronavirus pandemic has
overwhelmed markets already suffering from continued trade
barriers, a foreign price war over oil and regulatory uncertainty
here at home," says Poet CEO Jeff Broin. A steep drop in oil prices
has made ethanol unprofitable for producers, leading to a rash of
closures across the country. (kirk.maltais@wsj.com;
@kirkmaltais)
FUTURES MARKETS
Livestock Futures Close Out Day Limit Up -- Market Talk
15:18 ET - In another turn for volatile livestock futures, both
lean-hog futures and live-cattle futures on the CME finish limit
up, with cattle rising 5.6% to 84.8 cents a pound and hogs rising
6% to 52.65c. This comes after hog futures dropped 25% last week,
and cattle futures 10%. Indications that new cases of coronavirus
are starting to come down in the US helped fuel both equities and
livestock today, with hopes of food service reopening at the end of
the month being the main factor for livestock futures. However,
both New York and New Jersey reported their highest daily
coronavirus death tolls today, likely pumping the brakes on
livestock enthusiasm in tomorrow's session. (kirk.maltais@wsj.com;
@kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Apr 7
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Apr 7 +$ 23.71 -$ 17.28
Apr 6 +$ 31.05 -$ 9.56
Apr 3 +$ 22.19 -$ 11.32
* Based on Iowa State University's latest estimated cost of production.
A positive number indicates a processing margin above the cost of
production of the animals.
Beef-O-Meter
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
Beef
For Today Choice 99.7
(Percent of Year-Ago) Select 98.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $2.17 per
hundred pounds, to $227.88, according to the USDA. Select-grade
prices rose $2.72 per hundred pounds, to $217.75. The total load
count was 162. Wholesale pork prices fell $3.59, to $53.70 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
April 07, 2020 17:34 ET (21:34 GMT)
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