JBS Executive Says He Illegally Paid Millions to Brazil Leaders
SAO PAULO--The chairman of meatpacking giant JBS SA has told prosecutors he made millions of dollars of illegal payments to President Michel Temer and his predecessors, Dilma Rousseff and Luiz Inacio Lula da Silva. The revelations, in documents released by the country's Supreme Court, came a day after the court said Mr. Temer was being formally investigated for corruption and obstruction of justice.
Brazilian Corruption Report Hits US Chickens -- Market Talk
12:53 ET -- Shares of Pilgrim's Pride (PPC) decline as S&P puts the US poultry processor's credit rating on watch with negative implications amid heightened corruption concerns in Brazil. Here's the connection: Brazilian media reported Brazilian President Michel Temer was taped encouraging Joesley Batista, chairman of Brazilian meat company JBS (JBSS3.BR), to bribe a potential witness to a corruption scheme. JBS is the majority owner of PPC. S&P, which has placed JBS's own credit ratings on a similar watch, says PPC's access to financing could be weakened by "reputational risks." PPC down 0.4% while the Dow zooms higher. (email@example.com; @jacobbunge)
STORIES OF INTEREST
Grain, Soybean Futures Find Footing After Brazil Rout
CHICAGO--Grain and soybean futures bounced on Friday, recovering some of the ground lost in selloffs earlier this week. Brazilian politics continued to concern traders as they assessed the implications of a scandal there for the real, which dropped sharply in the aftermath, and by extension Brazil's agricultural exports.
Is Raw Milk Trend Fueling Illnesses? -- Market Talk
15:30 ET -- Federal health authorities report that raw milk and cheese products cause 96% of foodborne illnesses linked to contaminated dairy products. Raw milk backers say that unpasteurized dairy has added health properties and tastes better. But the products have been linked to sickness, hospitalizations and deaths, including at least two linked to a New York dairy this year. (firstname.lastname@example.org; @heatherhaddon)
Livestock Futures Rise as Dollar Slumps
CHICAGO--Livestock futures rose Friday as traders bet that a weak dollar would stoke demand for U.S. meat.
The greenback recently slumped to multimonth lows, helping make American beef and pork cheaper in the global export market. That in turn is creating buying interest from major consumers like China, said Mike Seery, president of Seery Futures, and helping inject strength into an otherwise sluggish commodity sector.
Estimated U.S. Pork Packer Margin Index - May 19
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
May 19 +$27.56 +$ 56.17
May 18 +$27.50 +$ 55.89
May 17 +$24.70 +$ 54.32
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 108.5
(Percent of Year-Ago) Select 104.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell 7 cents per hundred pounds, to $247.14, according to the USDA. Select-grade prices fell 24 cents per hundred pounds, to $221.42. The total load count was 89. Wholesale pork prices rose 13 cents, to $86.53 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 19, 2017 17:24 ET (21:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.