TOP STORIES 
 

Meat, Grain Groups Team to Lobby Trump on Trade -- Market Talk

14:02 ET - Groups representing the US grain and meat sectors are teaming up to emphasize to the Trump administration the agricultural sector's reliance on trade -- and counterbalance other industries arguing for protectionism. The North American Export Grain Association and North American Meat Institute have joined to develop a "Food and Agriculture Trade Dialogue" to preserve and protect what the groups say are trade policies benefiting farmers, ranchers and agribusiness, underpinning $130B in food exports in 2015. The effort aims to unite agricultural groups, "particularly given that other sectors of the US economy likely will argue for a more protectionist and inward-looking policy focus," according to a memo from the National Grain and Feed Association, which is participating as well. (jacob.bunge@wsj.com; @jacobbunge)

USDA Sets Standards for Organic Egg, Meat Producers -- Market Talk

10:59 ET - US Department of Agriculture issues new requirements for farmers and ranchers who sell USDA-certified "organic" products, ahead of the administrative regime change. Sustainable-agriculture advocates have long argued the organic standards were too vague, giving equal credit to producers who crowd their animals in sheds and those that allow chickens and pigs to roam outdoors. In the new rules, eggs sold with the organic seal will come from hens that have daily access to grass, closing a loophole that allowed producers to build enclosed porches for their birds instead. Minimum space requirements for meat-chickens kept indoors have also been raised, among other changes. (kelsey.gee@wsj.com; @kelseykgee)

 
   STORIES OF INTEREST 
 

Land of Milk Money: Dairy Consumers Cash in on Class-Action Settlement

Got milk?

Lactose-tolerant Americans are cashing in on a class-action settlement from a milk price-fixing lawsuit.

The settlement stems from a 2011 lawsuit -- settled earlier this year -- alleging a dairy industry conspiracy to suppress milk production and raise consumer prices through a "herd retirement" program. Dairy farmers participating in the program, according to the plaintiffs' allegations, agreed to prematurely slaughter their herds and suspend milk production for at least one year.

Bega Cheese Buys Vegemite, Other Brands in $348M Deal

MELBOURNE, Australia--Iconic Australian condiment Vegemite will fall into Australian hands as part of a 460 million Australian dollar (US$348 million) acquisition by Bega Cheese Ltd. (BGA.AU) of most of Mondelez International Inc.'s (MDLZ) cheese and grocery business in Australia and New Zealand.

The thick, salty spread is among several products using the Kraft brand in the region that will be bought by the Australian dairy-products company, including peanut butter, processed cheese slices and Kraft Mac & Cheese, as well as a license to the Dairylea brand. The deal doesn't, however, cover the Philadelphia brand.

 
   FUTURES MARKETS 
 

U.S. Cattle Futures Rally to New 7-Month Peaks on Cash Strength

CHICAGO--U.S. cattle futures climbed to a new 7-month high on Wednesday, buoyed by gains in the cash markets, where meatpackers competed aggressively for a tighter supply of available livestock.

Cattle futures for February rose 0.7 cent, or 0.6%, to $1.20275 a pound, the highest closing price for a front-month contract since June 10. April live cattle advanced 0.4 cent to $1.1940 a pound. Feeder cattle for January picked up 0.075 cent to $1.3100 a pound.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog Market Steady At $38.00 - Jan 18 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $38.00 per hundredweight.

Sow prices are steady.

Sows weighing under 450 pounds are $29.00-$30.00, 400-450 pounds are at $29.00-$30.00, 450-500 pounds are $29.00-$30.00 and those over 500 pounds are $32.00-$34.00.

The day's total run is estimated at 100 head.

Prices are provided by the Central Livestock Association.

 
Estimated U.S. Pork Packer Margin Index - Jan 18 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically 
                             integrated operations 
                                      * 
Jan 18       +$26.90              +$35.76 
Jan 17       +$31.58              +$39.65 
Jan 16       +$23.84              +$37.22 
 
* 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   84.0 
      (Percent of Year-Ago)     Select   84.1 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Wednesday rose $1.60 per hundred pounds, to $193.22, according to the USDA. Select-grade prices rose 83 cents per hundred pounds, to $188.06. The total load count was 133. Wholesale pork prices fell $1.81, to $78.37 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

January 18, 2017 17:37 ET (22:37 GMT)

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