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Smithfield Foods to Temporarily Close Two Additional Plants in US

Smithfield Foods Inc. on Wednesday said it will temporarily shutter two additional facilities later this week, one in Wisconsin and one in Missouri, due to circumstances arising from the Covid-19 pandemic.

The company said it would close its Martin City, Mo., plant indefinitely. That facility receives raw materials from Smithfield's Sioux Falls, S.D., facility, which is also closed indefinitely.

The company's dry sausage and bacon plant in Cudahy, Wis., will be closed for two weeks, it said.

Danone's Organic Growth Is Expected to Be Hit by Mizone's Loss -- Market Talk

1156 GMT - Danone's organic growth is expected to be hit by lower sales mainly in China's water business unit, Equita says. The Mizone brand, the leading Chinese vitamin drink brand, is forecast to suffer sales loss due to the lockdown, "as it is a vitamin water mainly consumed on the go or during sports," according to the bank. The French food company may also slightly revise its current organic sales growth guidance, analysts at Equita say. The bank cuts its like-for-like sales estimate for the company from 3% to 2% for 2020. Danone is scheduled to release first-quarter results on Tuesday. (giulia.petroni@wsj.com)

STORIES OF INTEREST

Ocado Gets Grocery Home-Delivery Boost; FTSE 100 Falls -- Market Talk

1631 GMT - Ocado is among a handful of FTSE 100 risers, up 3.9% as the blue-chip index falls 3.3% overall, as the UK online grocer benefits from increased demand for home deliveries in the coronavirus crisis. Ocado has been very popular in recent weeks due to social-distancing policies, CMC Markets says. "There is chatter the UK will extend its lockdown and should that be the case, Ocado is likely to remain high on traders' shopping lists," CMC's David Madden says. (philip.waller@wsj.com)

Leong Hup Will Likely See Persistent Weak Poultry Demand -- Market Talk

0815 GMT - Leong Hup International will likely experience prolonged weak demand for its poultry products, even after restrictions in Southeast Asia countries are eased, Hong Leong Investment Bank says. This is because social distancing practices will likely continue even after people start moving around more, resulting in persistent weak demand from institutional customers, the brokerage says. Hong Leong says lockdowns in the region have hurt poultry demand, particularly day-old chicks and broilers. Hong Leong downgrades Leong Hup to hold from buy and cuts its target price to MYR0.56 from MYR0.92. Leong Hup's shares fall 0.9% to MYR0.57. (chester.tay@wsj.com)

Soybeans Get Boost From High Crush Figures -- Market Talk

1336 ET - Soy futures on the CBOT got a lift from figures showing a new record for US soybean crush. According to a report from the National Oilseed Processors Association, 181.4 million bushels of beans were crushed in March -- a new monthly record. It's a 6.7% year-over-year increase, NOPA says. Demand in both soyoil and soymeal appear to be stronger over last year, according to NOPA data. As a result, CBOT soybean futures turned positive, up 0.2%. Soymeal futures are up 2%, and soyoil futures pares its losses to down 0.6%. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS

Livestock Futures Reverse Earlier Losses -- Market Talk

15:36 ET - After starting the day lower, livestock futures on the CME turn the corner and finish in the black. Live-cattle futures on the CME gain 1.2% at 84.825 cents a pound, while lean-hog futures rise 1.5% at 44.625c. China is slowly reopening its economy after pausing to deal with coronavirus for most of the year, which may prove to be a boon for US meat exports. Meanwhile, US livestock traders are hoping businesses reopening from quarantine will unleash pent-up demand for meat. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Apr 15 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Apr 15       +$ 31.35            -$ 22.74 
Apr 14       +$ 32.77            -$ 19.88 
Apr 13       +$ 27.82            -$ 20.09 
 
* 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   99.3 
      (Percent of Year-Ago)     Select  100.5 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Wednesday rose $3.86 per hundred pounds, to $230.53, according to the USDA. Select-grade prices rose $6.45 per hundred pounds, to $222.22. The total load count was 112. Wholesale pork prices fell $1.33, to $51.16 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

April 15, 2020 17:35 ET (21:35 GMT)

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