TOP STORIES

Swine-Fever Impact Could Last for WH -- Market Talk

0638 GMT - With 8,116 hogs culled as a result of African swine fever, Goldman Sachs sees the outbreak not only disrupting WH's operations but also having a longer-term impact on hog prices and consumer confidence. That as a 10% increase in hog prices would pressure the pork processor's EPS some 4.5%, the investment bank estimates. It adds that whether careful monitoring can limit further spreading of the disease remains to be seen. Shares are little changed in Hong Kong after Thursday's 7.5% slide. (john.wu@wsj.com)

Salads Sold at McDonald's Sicken 476 -- MarketWatch

The Centers for Disease Control and Prevention says a romaine lettuce and carrot mix that was sold at McDonald's Corp. (MCD) tested positive for cyclospora, which has resulted in 476 illness cases across 15 states. Twenty-one people were hospitalized. Cyclospora is an intestinal illness caused by a parasite. The salads came from a Fresh Express processor in Streamwood, Ill. Fresh Express, which was alerted to the results on July 27, says the carrot mix went to McDonald's and the romaine-only item was distributed elsewhere. Romaine lettuce from the same lot tested for cyclospora in salads and wraps distributed by Caito Foods. A public health alert was issued on July 30 about salads and wraps distributed by Caito Foods. McDonald's shares are down 6.3% for the year-to-date while the Dow Jones Industrial Average is up 4.1% for the period.

Deans Foods Remains Under Pressure from Milk Demand -- Market Talk

09:48 ET - JPMorgan downgrades Dean Foods to underweight, citing concerns of higher costs and lower demand for milk. Analysts say they expect the food and beverage company to miss 3Q earnings estimates and anticipate rising milk costs as dairy farmers are under pressure. "Dean's profitability has been negatively correlated over the years with the cost of Class I milk, its primary input," analysts say. Demand for milk continues to fall in the U.S. as well, with sales of fluid milk down 10% over the last five years, analysts say. Shares are down 9.5%. Dean shares dropped 15% on Aug. 7 after company reported weak 2Q results and outlook. (francesca.fontana@wsj.com; @francescamarief)

STORIES OF INTEREST

Panera Founder Backs Mediterranean-Style Chain Cava in Zoe's Kitchen Deal

An investment vehicle backed by Panera Bread Co. founder Ron Shaich is bringing together two Mediterranean-style fast-casual restaurants.

Zoe's Kitchen Inc. announced Friday it has agreed to be acquired by Cava Group Inc. in a deal valued at $250 million. Mr. Shaich's Act III Holdings is set to lead a "significant" equity investment in Cava restaurants as part of the deal, alongside Invus Group, SWaN & Legend Venture Partners and Revolution Growth.

FUTURES MARKETS

Hog Futures Extend Rally on China Virus, Trade -- Market Talk

17:08 ET - Hog futures rallied over 5% as traders continued to fret over a pig disease outbreak in China. Two incidents this month of African swine fever, a virus that is deadly to hogs, have spooked traders. They're betting that it could result in longer-term demand for U.S. pork if China has to cull significant numbers of pigs and make up the shortfall elsewhere. The WSJ reports that China and the U.S. are looking to resolve their trade dispute by the end of the year, which sent prices higher at the end of the session. CME October lean hog futures rise 5.6% to 58.6 cents a pound. (benjamin.parkin@wsj.com; @b_parkyn)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Aug 17 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Aug 17       +$ 50.14            +$  9.23 
Aug 16       +$ 48.31            +$ 10.74 
Aug 15       +$ 49.11            +$ 12.76 
 
* 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  108.8 
      (Percent of Year-Ago)     Select  104.4 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Friday rose $2.28 per hundred pounds, to $211.38, according to the USDA. Select-grade prices fell 54 cents per hundred pounds, to $200.92. The total load count was 88. Wholesale pork prices fell 70 cents, to $66.03 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

August 17, 2018 17:53 ET (21:53 GMT)