TOP STORIES 



  Meatpacking Capacity Back to 95% of 2019, USDA Says -- Market Talk 


  15:35 ET - Meatpacking facilities nationwide are operating very close to their 2019 production levels, the USDA says--showing that the industry has nearly recovered production-wise from a wave of coronavirus-related closings in April. In a statement, Agricultural Secretary Sonny Perdue credits an Executive Order from President Trump as accelerating the recovery rate for meatpackers, after big players like Tyson and JBS shut down plants due to workers being infected with the virus. "President Trump took decisive action to ensure America's meatpacking facilities reopen in a safe way to ensure America's producers and ranchers will be able to bring their product to market," says Perdue. Meatpackers previously forecast that interruptions at these plants would affect meat prices for months. (kirk.maltais@wsj.com @kirkmaltais) 


  Beef Supplies Tight for J. Alexander's -- Market Talk 


  13:32 ET - Full-service restaurant chain J. Alexander's Holdings says it is grappling with limited beef supply and higher than normal costs related to all of its beef items. The 46-unit chain says it's working with suppliers to get the aging process started up again as its reopening dining rooms. "There are operational hurdles at all levels of the supply chain," the Nashville, Tenn.-based chain says in a filing. Shares are off 9% at $5.94. (heather.haddon@wsj.com; @heatherhaddon) 


  STORIES OF INTEREST 


  China Mengniu May Gain From Stronger Milk Demand in Post-Pandemic China -- Market Talk 


  0820 GMT - China Mengniu Dairy is likely well-positioned to benefit from increasing demand for milk products after the coronavirus pandemic raised Chinese consumers' health and nutrition awareness, Jefferies says. The company's sales recovery has been faster than expected, achieving double-digit revenue growth on year by May, Jefferies says, adding the solid upturn should extend through year-end thanks to strong demand. Mengniu has likely improved brand reputation significantly by its large money and product donations at the peak of the pandemic in China, which will strengthen its industry leadership and allow it to capture most of the rising demand, Jefferies says. Shares are up 5.7% at HK$30.85. (yifan.wang@wsj.com) 


  Brinker Says Generating Positive Weekly Cash Flows as Chili's Outpaces Industry 


  Brinker International Inc., parent of the Chili's Grill & Bar and Maggiano's Little Italy chains of restaurants, said it was now generating weekly positive cash flows as dining rooms reopen with the easing of regulatory restrictions imposed during the coronavirus pandemic. 


  FUTURES MARKETS 


  Cattle Finishes Higher, Hogs Slump -- Market Talk 


  15:18 ET - Live cattle futures on the CME finish up 1.5% at 97.8 cents per pound, while lean hogs fell 1.9% to 52.975 cents per pound. Both commodities are being affected by an influx of freshly slaughtered animals, although traders appear to be reacting to this differently. "This week's kill could exceed year ago levels, with higher carcass weights due to the backup caused by coronavirus-driven plant closures this spring," says Arlan Suderman of INTL FCStone. (kirk.maltais@wsj.com; @kirkmaltais) 


   CASH MARKETS 

 
Estimated U.S. Pork Packer Margin Index - Jun 9 
 
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 
 
Jun  9       +$ 74.91            +$ 14.41 
Jun  8       +$ 80.80            +$ 17.66 
Jun  5       +$ 79.34            +$ 22.02 
 
* 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  111.4 
      (Percent of Year-Ago)     Select  109.2 
 
USDA Boxed Beef, Pork Reports 


  Wholesale choice-grade beef prices Tuesday fell $7.58 per hundred pounds, to $247.00, according to the USDA. Select-grade prices fell $3.17 per hundred pounds, to $227.95. The total load count was 230. Wholesale pork prices fell $1.51, to $68.44 a hundred pounds, based on Omaha, Neb., price quotes.