TOP STORIES

Tyson Posts Weaker Profit After Fire at Beef Plant -- Update

Tyson Foods Inc. said profit fell by almost one-third in its latest quarter, in part because a fire forced it to temporarily close a major beef-processing plant.

The company on Tuesday reported quarterly earnings of $369 million, or $1.01 a share, down from $537 million, or $1.47 a share, a year earlier. Earnings of $1.21 a share, following adjustments, fell short of forecasts from analysts polled by FactSet.

Tyson Sees Beef Plant Reopening In 60 Days -- Market Talk

10:09 ET - Tyson Foods expects its Holcomb, Kan. beef-processing plant to reopen sometime within the next 60 days, CEO Noel White says, calling that a conservative estimate. The plant is one of the biggest in the beef industry, representing about 5% of daily US cattle-slaughtering capacity, and its shutdown in August after a fire sent cattle prices sharply lower for ranchers and feedlot operators, with one major slaughterhouse offline. For meatpackers like Tyson, processing profit margins went up, as the supply of processed beef became constrained. (jacob.bunge@wsj.com; @jacobbunge)

STORIES OF INTEREST

Tyson Foods Broadens Plant-Based Push -- Market Talk

09:48 ET - Meat giant Tyson Foods is expanding its meat-free business, CEO Noel White says, as the company doubles distribution of its nascent protein alternative offerings to more than 7,000 stores and begins selling to restaurants. Tyson in August began rolling out its "Raised & Rooted" brand of plant-based nuggets, Tyson's answer to the burgeoning meat alternative wave driven by Beyond Meat and Impossible Foods. (jacob.bunge@wsj.com; @jacobbunge)

How to Get Die-Hard Meat Eaters to Try Impossible Burgers: Trick Them

How do you get die-hard meat eaters to try a plant-based burger? You trick them.

The rise of meatless meat is inspiring early adopters to dupe family and friends -- or in the case of restaurants, their customers. As might be expected, it doesn't always go over well.

Tyson's Chicken Business Improving, CEO Says -- Market Talk

09:35 ET - Tyson Foods dominates the US chicken business, but operating stumbles at plants in recent quarters have hampered profits in the Arkansas meat giant's core business. CEO Noel White--a longtime Tyson operations exec named to the position about a year ago--says Tyson expects the picture to get better in 2020, after Tyson has improved and streamlined functions at plants. "We now have the right people in the right roles, and we're seeing improvement, although we're not satisfied with the pace, " he says on an earnings call. Tyson up 3% in early trading.(jacob.bunge@wsj.com; @jacobbunge)

Cold Temps Could Have Mixed Impact on US Crops -- Market Talk

0916 ET - An 'arctic blast' that is expected to introduce freezing temperatures to over 2/3rds of the continental US and break as many as 300 low-temperature records for this time of year will have different effects on various parts of the country. For farmers in the Midwest, the cold weather will spur higher feed demand for livestock, and freeze muddy fields - allowing for combines to easily pass through, says AgResource. Meanwhile, the bitter cold may damage crops growing in Texas and other Gulf states, according to Allendale Inc. For Texas, the weather may have a stronger effect on the state's cotton and peanut crops, both of which are no more than 50% harvested as of the USDA's last crop progress report. A new report is scheduled to be released this afternoon. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS

Hog Futures Close Higher Even As Chinese Prices Sink -- Market Talk

15:37 ET - Lean hog futures on the CME rise 2.3%, closing at 64.725 cents per pound. Even though hog futures in the US appear to be following pork cutout prices higher, pork prices in China are falling after skyrocketing this year in reaction to African swine fever's decimation of its hog population. "This is not from a build in pork production, but rather from a decline in demand," says Karl Setzer of AgriVisor. "Consumers in China are passing over high priced pork in favor of cheaper meats, mainly poultry." Meanwhile, live cattle futures fall 0.1% to $1.1975 per pound, with the 2-month rally of the cattle contract appearing to stall out after breaking the $1.20 per pound barrier last week. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Nov 12 
 
 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 
 
Nov 12       +$ 91.89            +$ 58.86 
Nov 11       +$ 86.54            +$ 53.89 
Nov 8        +$ 78.05            +$ 45.57 
 
* 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  111.6 
      (Percent of Year-Ago)     Select  107.9 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday rose $1.91 per hundred pounds, to $240.50, according to the USDA. Select-grade prices rose $2.54 per hundred pounds, to $216.23. The total load count was 92. Wholesale pork prices rose $2.31, to $87.78 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

November 12, 2019 17:29 ET (22:29 GMT)