TOP STORIES

Rising EUR/USD Provides Tailwind to NZ Dairy Exports -- Market Talk

2041 GMT - Unfavorable weather and a 10% rise in the EUR/USD since the start of January is souring Europe's dairy exports, providing an opportunity for New Zealand to claim additional market share. "While US milk supply continues to grow steadily (1.5%-2%) and the lower USD is making exporting more attractive, Europe remains New Zealand's largest direct competitor," ANZ says. New Zealand's Fonterra Cooperative, the world's largest dairy exporter, last month raised lifted its farmgate milk price forecast to NZ$6.75/kg of milk solids, up 25 cents on a prior estimate provided in May. (david.winning@wsj.com; @dwinningWSJ)

Grain, Soybean Futures Lower as Crop Tours Begin -- Market Talk

10:21 ET - Grain and soybean futures continue lower. Traders are looking to crop scouts touring the Midwest this week for insight into how this year's crops are progressing. Participants passing through Ohio this morning report wide divergence in crop conditions, with corn yield estimates ranging from 223 to 88 bushels per acre. "I anticipate we'll see some more of that variability," says Brian Grete, who is leading the eastern leg of the tour. CBOT September corn futures fall 1.1% to $3.48 1/4 a bushel. Soybeans slide 0.5% to $9.33 while wheat drops 1% to $4.12. (benjamin.parkin@wsj.com; @b_parkyn)

 
   STORIES OF INTEREST

Weekend Rain Dampens Corn, Soybean Futures

Grain and soybean futures fell after weekend rain eased concerns about crop stress in the western Midwest.

Rain fell in parts of key crop-growing states like Iowa, Illinois and Missouri, and is expected to continue in western areas early this week. That should help improve moisture for corn and soybean growth, said MDA Weather Services.

U.S. Stocks Edge Higher After Selloff

The Dow Jones Industrial Average regained some ground Monday, eking out a gain after its biggest two-week decline of the year.

The blue-chip index traded in a narrow range for much of the session, wobbling between small advances and declines before rising into the close.

 
   FUTURES MARKETS

Hog Futures Tumble on Large Supplies

Hog futures started the week sharply lower as traders reckoned with growing supplies of pork.

Last week's estimated hog slaughter of 2,332,000 head was the largest weekly slaughter in August on record, said Dennis Smith of Archer Financial Services. Pork production also rose last week to the highest in over three months, according to the U.S. Department of Agriculture.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog $2.00 Lower At $48.00 - Aug 21 
 
  Barrow and gilt prices at the Zumbrota, Minn., livestock market today 
are $2.00 Lower at $48.00 per hundredweight. 
 
Sow prices are $3.00 lower. Sows weighing under 450 pounds are $52.00-$54.00, 
400-450 pounds are at $52.00-$54.00, 450-500 pounds are $52.00-$54.00 and 
those over 500 pounds are $57.00-$59.00. 
 
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 - Aug 21 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Aug 21       +$33.56             +$ 63.27 
Aug 18       +$30.01             +$ 63.07 
Aug 17       +$28.01             +$ 66.06 
ß 
* 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   96.1 
      (Percent of Year-Ago)     Select   98.7 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Monday fell $1.20 per hundred pounds, to $193.09 according to the USDA. Select-grade prices fell 88 cents per hundred pounds, to $191.62. The total load count was 103. Wholesale pork prices rose 9 cents, to $89.83 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

August 21, 2017 17:50 ET (21:50 GMT)

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