TOP STORIES

 

China Lifts Import Restrictions on U.S. Farm Goods

WASHINGTON -- U.S. officials said Tuesday that Chinese leaders have taken the first steps toward implementing the first phase of a trade deal between the world's two largest economies, an announcement that comes amid concerns that the coronavirus could delay the pace of China's promise to purchase more U.S. crops and other goods.

In a statement, U.S. officials noted that Chinese leaders have lifted import restrictions on U.S. poultry and poultry products and pet food, along with other actions, since the deal took effect on Feb. 14. Those provisions were part of a 90-page written agreement signed last month.

 

STORIES OF INTEREST

 

Burger King Franchisee Cautious on Delivery -- Market Talk

13:30 ET - Burger King's biggest franchisee says it's been skeptical of delivery until services providers signed off on allowing it to increase prices by 10% and restrict the items it sold to-go. "We were not a big fan of delivery until the model change," says Daniel T. Accordino, CEO of Burger King franchise Carrols Restaurant Group in 4Q earnings. Carrols will install ordering mechanisms that allow for the dual pricing structure in May, and test the impact on its margins from there, executives say. (heather.haddon@wsj.com; @heatherhaddon)

 

Subpar Discounts Leads to Less Burger King Traffic -- Market Talk

1326 ET - Burger King's biggest franchisee says the menu of discounts offered by its parent company had less impact in 4Q, prompting customer visits to plunge by 6%. Carrols Restaurant Group says promotions and discounts fell to 19% of restaurant sales in its last quarter, from 27% the previous year. Burger King added the Impossible Whopper and a chicken sandwich to its two items for $6 discount menu, but those and other current value options failed to beat a 10-piece chicken nuggets for a buck deal on menus in 2018, Carrols says. Carrols shares fall 3.7%. (heather.haddon@wsj.com; @heatherhaddon)

 

USDA: Paul Kiecker to Succeed Carmen Rottenberg -- Market Talk

13:15 ET - The US Department of Agriculture says Paul Kiecker will become Administrator of the Food Safety and Inspection Service, as Administrator Carmen Rottenberg will depart federal service. Agriculture Secretary Sonny Perdue said "ensuring the safety of America's food supply is USDA's most important responsibility, and one that Carmen carried out with dedication and vision." He says under Rottenberg's leadership "an unprecedented level of collaboration was achieved with federal, state and municipal agencies and other stakeholders." Kiecker joined FSIS as a food inspector in 1988 and became Deputy Administrator in 2018. (josh.beckerman@wsj.com)

 

FUTURES MARKETS

 

Cattle Futures Finish 2% Lower -- Market Talk

15:42 ET - Cattle futures finish the day down 2% to $1.1295 a pound, leaving cattle 6.5% lower over the past four days. Demand overseas for US meat is expected to continue to shrink due to coronavirus. Hog futures, meanwhile, close the day 0.1% higher. Hog futures in February are up 5% for the month, but down 4.3% from this month's high of 67.575 cents a pound reached Feb. 19. (kirk.maltais@wsj.com; @kirkmaltais)

 

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Feb 25 
 
 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 
 
Feb 25       +$ 27.91            +$  7.08 
Feb 24       +$ 29.93            +$  6.80 
Feb 21       +$ 25.65            +$  4.22 
 
* 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   94.5 
      (Percent of Year-Ago)     Select   93.2 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday rose 40 cents per hundred pounds, to $207.47, according to the USDA. Select-grade prices fell $2.47 per hundred pounds, to $199.90. The total load count was 141. Wholesale pork prices rose 13 cents, to $65.03 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

February 25, 2020 17:27 ET (22:27 GMT)

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