LIVESTOCK HIGHLIGHTS: Top Stories of the Day
20 October 2017 - 10:38PM
Dow Jones News
TOP STORIES
Chipotle Expected to Slow Pace of New Restaurant Openings --
Market Talk
11:53 ET - Chipotle might consider scaling back the number of
new restaurant openings until customer traffic improves, says
Cowen. The chain has been opening approximately 200 new restaurants
per year, which Cowen argues "has proven to be a distraction to
turning around sales." The firm believes opening 175 new
restaurants next year would be a more reasonable pace. Other
restaurants, including Zoe's Kitchen and Potbelly, have also
recently announced plans to slow the rate of new restaurant
openings in order to focus on improving operations at existing
restaurants. Many others have been closing underperforming
locations. "We get the sense CMG is prioritizing improving in-store
operations over unit growth, leading us to believe 2018 unit
development targets are likely to trail street expectations, and
potentially ours as well," Cowen says. (julie.jargon@wsj.com)
Corn, Wheat Futures Tumble to Month-Low
Grain and soybean futures turned lower on Friday as the prospect
of growing supplies stymied buying interest.
Rain in the Midwest in the coming days should slow the speed at
which farmers can harvest their corn and soybean crops, though
analysts expect them to soon resume a brisk pace. Meanwhile,
traders are less concerned about dry conditions in northern
Brazil--which initially hampered soybean planting--with wetter
forecasts in the weeks to come.
STORIES OF INTEREST
Analyst Questions Whether Worst Is Over for Big Food -- Market
Talk
8:05 ET - Bernstein analyst Alexia Howard says big food
companies' stock prices have fallen this year, "which makes our
negative stance more controversial these days," she notes. She says
cost-cutting and deal-making opportunities are there, which makes a
case for investing in these food giants now. But she doesn't think
the worst is over in terms of consumer eating habits changing to
the detriment of companies like Kraft Heinz and General Mills. "The
rise of Amazon/The Whole Foods Market is likely to spur the growth
of premium fresh prepared food in brick and mortar stores...and
retailers take many years to overhaul their store floor prints,"
she says. (annie.gasparro@wsj.com)
Whole Foods Data Breach Affected About 100 Taprooms, Restaurants
-- Update
Whole Foods Market said Friday that a data breach involving
credit-card charges made at the grocer's taprooms and full-service
restaurants affected about 100 venues in its stores over a
six-month period.
The company said the hack lasted from March 10 until Sept. 28
and included bars and restaurants in 30 states, including
California, Florida, Pennsylvania and Virginia. Big cities
including New York City, Chicago, Washington, D.C., were among
those targeted. Ninety-six of the of the grocer's stores were
breached, or about a fifth of the chain's total.
FUTURES MARKETS
Cattle Placements Jump in September
Traders are bracing for an uptick of slaughter-ready cattle
supplies next year after feedyards placed more livestock than
expected in lots for fattening.
The U.S. Department of Agriculture said on Friday that cattle
placements in September rose 13% from a year earlier, to 2.15
million head, well above pre-report estimates that forecast a 7%
increase.
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 20
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Oct 20 +$16.28 +$ 31.49
Oct 19 +$15.27 +$ 28.52
Oct 18 +$16.79 +$ 26.83
* 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 112.0
(Percent of Year-Ago) Select 112.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday rose 29 cents per
hundred pounds, to $199.86, according to the USDA. Select-grade
prices rose 38 cents per hundred pounds, to $191.14. The total load
count was 101. Wholesale pork prices rose $1.38, to $75.05 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 20, 2017 17:23 ET (21:23 GMT)
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