Cattle futures mostly edged higher on Friday, attributed by many analysts to position squaring and short covering. Stabilizing prices were welcome news, whatever combination of reasons.
After 80¢ lower in spot Jun, Live Cattle futures closed an average of 43¢ higher (2o¢ to 67¢ higher).
Feeder Cattle futures closed an average of 74¢ higher (42¢ to 95¢ higher).
Choice boxed beef cutout value was 10¢ higher Friday afternoon at $249.84/cwt. Select was 73¢ lower at $219.80.
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Major U.S. financial indices closed mixed on Friday. Amazon’s announced purchase of Whole Foods for $13.7 billion (see below) seemed to be the major news investors responded to, as the stocks of major grocers like Wal-Mart and Kroger declined on the news. Slower housing starts in May—5.5% fewer than in April and 2.2% less than a year earlier—also provided pressure.
The Dow Jones Industrial Average closed 24 points higher. The S&P 500 closed fractionally higher. The NASDAQ closed 13 points lower.
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Amazon and Whole Foods Market, Inc. announced on Friday that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.
Whole Foods Market will continue to operate stores under the Whole Foods Market brand. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market’s headquarters will stay in Austin, Texas.
Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.