DJ LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Nov 07, 2012 (Dow Jones Commodities News via Comtex) --
TOP STORIES
MARKET TALK: In Food, It's All About Volume
8:40 EST - When it comes to the packaged-food business, success and failure are going to be measured by volume, says Kraft (KRFT) CEO Tony Vernon. "Volume is going to be the key metric for this industry, not just for Kraft, but for our customers and our competitors." It's going to be tough to get volumes moving much higher soon as the tough economic environment isn't the most conducive to getting people to buy more products. As for KRFT, its overall volume was essentially flat in 3Q when accounting for retailers filling up inventory ahead of the company's split. Still, shares are up 1.5% premarket at 45.38 as EPS handily topped consensus.
STORIES OF INTEREST
MARKET TALK: Financial Stocks Likely to Lose 'Hope Premium' - JMP
9:40 EST - While the broader market could muster a rally in the aftermath of the U.S. presidential election, big banks are likely to give back the "hope premium" they gained in recent weeks and months, says JMP Securities analyst David Trone, referring to the belief that a victory by Romney may have meant the repeal of some "burdensome" regulations. Trone says a selloff among the so-called bulge bracket banks is likely after President Obama's victory. Trone is still bearish on the likes of J.P. Morgan (JPM), Citigroup (C), BofA (BAC), Goldman Sachs (GS) and Morgan Stanley (MS) for reasons including the looming U.S. fiscal cliff, European debt crisis, ongoing legal attacks on the financial-services industry and low interest rates.
THE MARKETS:
MARKET TALK: Live Cattle, Hogs Fall on Weak Outside Markets
9:24 EST - Live-cattle set to retreat from gains made Tuesday, pressured by lower outside markets. Some analysts anticipated the results of the U.S. presidential election would result in a more bearish market as both candidates had articulated political stances that could affect trading activities. Wednesday, following President Obama's win, many markets are slumping. CME Dec live-cattle recently down 0.15 cent, or 0.12%, to 1.25525/lb in electronic trading. Lean-hogs also seen lower, doubly affected by worries about larger-than-expected hog supplies next spring and summer, following reports of slowing sow liquidation. Dec lean-hogs recently down 0.05c, or 0.1% to 77.52c/lb.
MARKET TALK: Cash-Cattle Bids Still No-Show, But Expected Wednesday
9:20 EST - Cash-cattle bids are a no-show so far, but initial quotes are expected to emerge sometime Wednesday. With the election over, industry participants will again focus on the business at hand, analysts say. That could generate some inquiry--and possibly even a few sales--before the end of the day, although the bulk of the week's trading will likely wait until Thursday or Friday. A few deals have been done in the south at modest premiums to quoted markets for sales this week, a broker says. Meanwhile, wholesale-beef prices were higher Tuesday on sales of 169 loads.
MARKET TALK: Cash-Hog Bids Seen Flat-Weak on Sluggish Demand
8:17 EST - Cash-hog bids in the Midwest are expected to range from flat to about 50c/hundredweight lower on sluggish packer demand. While processing margins remain positive, packers may have problems selling pork near term as Thanksgiving approaches, say livestock dealers. Wholesale-pork prices fell 1.19 Tuesday to 85.30. Meanwhile, projections for Saturday's slaughter are 190-200K head, putting the week's total near 2.36M. Also, 3 plants are expected to be closed Monday in observance of Veterans Day. Terminal markets are predicted to trade generally flat Wednesday.
Write to Curt Thacker at curt.thacker@dowjones.com.
(END) Dow Jones Newswires
11-07-12 0955ET
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