LIVESTOCK HIGHLIGHTS: Top Stories of the Day
September 19 2017 - 5:33PM
Dow Jones News
TOP STORIES
JBS Extends Loss as Founding Family Keeps Control -- Market Talk
16:48 ET - Shares of Brazil's giant meatpacker JBS SA fell for
the second consecutive day following the announcement that the
company's board decided to keep a family member at the helm. JBS,
whose controlling shareholders have been involved in a corruption
scandal, saw its shares fall 0.94% Tuesday after closing down 3.95%
the day before. Late Sunday, JBS said its board picked Jose Batista
Sobrinho, 84, founder and father of former CEO Wesley Batista, who
has been arrested, to replace him. (luciana.magalhaes@wsj.com)
Post Holdings to Buy Bob Evans Packaged Food Business for $1.5 Billion
Post Holdings Inc. said it plans to buy breakfast-sausage maker
Bob Evans Farms Inc., the latest in a series of acquisitions by the
cereal maker aimed at getting shelf space in faster growing areas
of the grocery store. Post, which makes Honey Bunches Of Oats and
Fruity Pebbles cereals, said it would combine the newly acquired
business with Michael Foods, a company it bought three years ago
that produces Simply Potatoes, Crystal Farms cheeses and liquid egg
whites.
STORIES OF INTEREST
Grain, Soybean Futures Fall on Yield Concerns
Grain and soybean futures fell on broader losses in the
commodity sector and early indications of another bumper harvest on
the way. Early soybean harvest yields from states like Iowa were as
high as 70 bushels an acre, said Karl Setzer, an analyst at
MaxYield Cooperative, suggesting that the U.S. Department of
Agriculture's most recent national forecast of 49.9 bushels an acre
might not have been as ambitious as many initially thought.
Bayer Applies to Extend EC's Monsanto Deal Review to Early 2018
Bayer AG (BAYN.XE) on Tuesday said that it submitted an
application on Monday to extend the European Commission review
deadline for its planned acquisition of Monsanto (MON) and that it
now expects the deal to close in early 2018. In late June, Bayer
filed a submission to obtain antitrust approval for the deal from
the European Commission. The European Commission initiated an
in-depth investigation into the deal on Aug. 22. Bayer's
application on Monday requested a ten-working-day extension of the
review deadline to Jan. 22, 2018.
FUTURES MARKETS
Hog Futures Rise on Higher Pork Prices
Hog futures rose Tuesday after pork prices were higher for the
first time in almost two weeks. Wholesale pork prices ended Monday
up 33 cents to $78.09 per 100 pounds, halting eight consecutive
trading days of decline. That encouraged traders to unwind negative
bets on Chicago Mercantile Exchange lean hog futures, said Rich
Nelson, chief strategist at brokerage Allendale Inc., particularly
in the deferred December contract.
CASH MARKETS
Zumbrota, Minn Hog $1.00 Lower At $33.00 - Sep 19
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are $1.00 lower at $33.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are
$26.00-$28.00, 400-450 pounds are at $26.00-$28.00, 450-500 pounds
are $26.00-$28.00 and those over 500 pounds are $30.00-$32.00.
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 - Sep 19
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
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
*
Sep 19 +$47.92 +$ 33.32
Sep 18 +$48.46 +$ 36.11
Sep 15 +$45.92 +$ 36.46
* 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 103.2
(Percent of Year-Ago) Select 105.9
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell 51 cents per
hundred pounds, to $192.11, according to the USDA. Select-grade
prices rose $1.13 per hundred pounds, to $188.83. The total load
count was 151. Wholesale pork prices fell $1.30, to $75.90 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
September 19, 2017 17:18 ET (21:18 GMT)
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