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U.S. Farm Incomes Seen Rising, Reversing Mulityear Slump
U.S. farm incomes will rise in 2017, halting three consecutive years of decline, as a slump in crop and animal prices eases.
The U.S. Department of Agriculture said net farm income will rise to $63.4 billion, up 3% from a year earlier but still just about half of 2013's record $124 billion.
Amazon Doesn't Dominate Food Retail Says Moody's -- Market Talk
11:50 ET - Amazon (AMZN) won't quickly capture a meaningful share of the grocery market from big retailers such as Wal-Mart (WMT) or Kroger (KR), Moody's writes in a new report. WMT captures over $200B of the roughly $800B food market annually, while KR sells about $130B, Albertsons gets $60B and Costco (COST) around $50B. AMZN's food sales will be less than $20B even after the acquisition of Whole Foods (WFM). "We believe it's a big stretch to say Amazon will dominate the U.S. food retail business in the next two years," Moody's writes. (firstname.lastname@example.org; @heatherhaddon)
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Bob Evans Farms Gets Boost from Sausage -- Market Talk
08:13 ET - Restaurant and retail food producer Bob Evans Farms (BOBE) beat revenue estimates in its 2Q, growing sales 27% to $109.3M. Excluding its acquisition of Pineland Farms and sales to Bob Evans Restaurants, BOBE grew sales 11%. BOBE, known for its namesake frozen breakfast sandwiches, says double-digit sales growth in refrigerated side dishes and sausage propelled its top line. The Ohio-based company now guides FY2018 EPS of $2.10-$2.30, up from $2.06-$2.24. (email@example.com; @CaraRLombardo)
STORIES OF INTEREST
Buffett Shoots Down Potential Kraft-Heinz Deals -- Market Talk
11:27 ET - Warren Buffett on CNBC says that Kraft Heinz (KHC) would not buy Mondelez (MDLZ). MDLZ shares have turned negative and are now down 2.2%. He also says KHC won't go after Unilever (UN), reiterating that he is not interested in hostile deals. KHC approached UN earlier this year but was rebuffed. Berkshire is a major owner of KHC along with Brazilian private equity firm 3G. (firstname.lastname@example.org, @NicoleFriedman)
Restaurant Chains, Food Companies Step Up Harvey Assistance -- 2nd Update
Food companies stepped up assistance to people affected by Tropical Storm Harvey on Wednesday, feeding emergency workers and donating meals to shelters while also working to reopen restaurants and grocery stores.
Some 130 McDonald's Corp. restaurants around Houston closed as Harvey dumped record rain on the city this week. Those that had reopened by Wednesday were donating bottled water to the Red Cross and providing free meals to police and other emergency workers, the burger giant said.
UK May Face Food Gaps, Port Chaos After Brexit: BRC -- Market Talk
1152 GMT - Britain faces food shortages and chaos at ports unless the government acts fast to agree comprehensive new customs and importation arrangements with the EU, retail chiefs say. Gaps could start appearing on supermarket shelves and prices may rise if ministers fail to put in place a system to ensure suppliers can keep importing products without delays, disruption or extra costs, the British Retail Consortium says in a report. It says a 'no-deal Brexit' could mean delays at ports of up to two or three days. "A customs union in itself won't solve the problem of delays at ports," says BRC Chief Executive Helen Dickinson. "To ensure supply chains are not disrupted and goods continue to reach the shelves, agreements on security, transit, haulage, drivers, VAT and other checks will be required to get systems ready for March 2019."(email@example.com)
Cattle Futures Steady; Auction Volume Picks Up
Cattle futures undid early losses to close largely unchanged, supported by technical factors and steady beef prices.
Wholesale beef has inched higher this week, pausing several weeks of losses. That has traders betting the broader cattle-and-beef market could stabilize in the weeks to come. A pound of beef rose to $1.9177 a pound on Tuesday, and was higher as of midday Wednesday.
Zumbrota, Minn Hog Steady At $42.00 - Aug 30
Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $42.00 per hundredweight.
Sow prices are $2.00 lower. Sows weighing under 450 pounds are $45.00-$47.00, 400-450 pounds are at $45.00-$47.00, 450-500 pounds are $45.00-$47.00 and those over 500 pounds are $49.00-$51.00.
The day's total run is estimated at 150 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Aug 30
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 30 +$38.36 +$51.23
Aug 29 +$37.54 +$51.87
Aug 28 +$36.92 +$53.98
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 96.6
(Percent of Year-Ago) Select 99.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell 5 cents per hundred pounds, to $191.72, according to the USDA. Select-grade prices rose 33 cents per hundred pounds, to $191.12. The total load count was 137. Wholesale pork prices fell 8 cents, to $84.23 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 30, 2017 17:09 ET (21:09 GMT)