LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 19 2017 - 05:36PM
Dow Jones News
TOP STORIES
Will Plant-Based Substitutes Push Cut Into Meat Jobs? -- Market
Talk
16:06 ET - Impossible Foods aims to replace part or all of the
conventional meat industry with plant-based versions that taste the
same, but don't require raising and slaughtering animals by the
tens of billions. CEO Patrick Brown acknowledges that if the
company succeeds--admittedly a long ways off--that will mean
changes for the 482,000 workers that staff US meat-processing
plants, not to mention farmers and ranchers. While Brown sees many
processing jobs as dangerous and low-paying, the company is looking
at the potential for locating some of its future production plants
in traditional ranching and farming strongholds. "Progress in this
area is inevitable," he says. (jacob.bunge@wsj.com;
@jacobbunge)
Impossible Foods Won't Take Meat Money -- Market Talk
15:35 ET - Startups angling to replace conventional meat
production have drawn investments from some of the world's biggest
meat companies, like Cargill and Tyson Foods, as the meat sector
aims to diversify. But Impossible Foods founder and CEO Patrick
Brown says his company won't follow suit. "There's an inherent
conflict of interest," he says, between established meatpackers and
a company like his, which aims to replace the current system of
farms, feedlots and slaughterhouses with plant-based alternatives.
Impossible Foods is marketing its Impossible Burger, which uses a
soy-derived compound called heme to replicate meat's taste and
consistency. (jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
Backyard Poultry Flocks Spur Record Salmonella Illnesses --
Market Talk
16:40 ET - A growing threat to American families comes from
chickens and ducks in their own backyards. According to the CDC,
2017 saw the biggest number of salmonella infections tied to
backyard poultry flocks on record. Over the course of the year,
1,120 cases of salmonella have been linked to contact with these
flocks, which can carry salmonella on their droppings, bodies and
eggs. Spread across 10 outbreaks and 48 states, 28% of salmonella
illnesses occurred in children younger than five, nearly 30% of ill
people were hospitalized and one person died. CDC says consumers'
interest in knowing where their food comes from is fueling a rise
in backyard flocks, and advises poultry-keepers to wash their hands
often and not to snuggle or kiss live birds. (jesse.newman@wsj.com;
@jessenewman13)
Plant-Based Meat Makers Seek to Cut Prices -- Market Talk
15:47 ET - As plant-based meat maker Impossible Foods rolls out
its burger patties in university and corporate cafeterias, CEO
Patrick Brown says the company expects its ground beef replacement
to in a few years match cow-derived versions in price, and
eventually be cheaper. Brown says the main challenge lies in
scaling up the company's production, and because it requires a
fraction of the land, water and other resources to produce a pound
of Impossible Burger, it's just a matter of time. "We're getting
better" in terms of efficiency and taste, Brown says. "The cow
isn't." (jacob.bunge@wsj.com; @jacobbunge)
Restaurants Raise Menu Prices with Caution -- Market Talk
11:55 ET - Restaurants are taking a cautious approach to raising
menu prices next year as they grapple with a sluggish eating-out
environment. Restaurant companies surveyed by Baird indicate that
operators plan to keep next year's menu price increases in line
with this year's despite rising labor and commodity costs. The
projected price increases of 1.5% to 2% are just enough to offset
commodity and labor inflation and "seemingly reflects a desire to
keep prices low in order to protect same-store traffic trends amid
a highly competitive industry environment," Baird says. Restaurants
have struggled in the last year as the gap between grocery and
restaurant prices have widened. (julie.jargon@wsj.com)
FUTURES MARKETS
Hog Futures Hit Eight-Week High
Hog futures rose to an eight-week high as meatpackers continued
to drive up cash prices for slaughter-ready pigs.
Two slaughter houses that opened in Iowa and Michigan in
September have added to national processing capacity, forcing
packers to pay more in order to secure supply for their plants.
CASH MARKETS
Zumbrota, Minn Hog Steady At $37.00 - Oct 19
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are steady at $37.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are $27.00, 400-450
pounds are at $27.00, 450-500 pounds are $27.00 and those over 500 pounds
are $29.00-$31.00.
The day's total run is estimated at 220 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Oct 19
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Oct 19 +$15.27 +$ 28.52
Oct 18 +$16.79 +$ 26.83
Oct 17 +$21.74 +$ 28.98
* 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 110.1
(Percent of Year-Ago) Select 110.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday rose $2.31 per
hundred pounds, to $199.57, according to the USDA. Select-grade
prices rose $1.67 per hundred pounds, to $190.76. The total load
count was 149. Wholesale pork prices rose 79 cents, to $73.67 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 19, 2017 17:21 ET (21:21 GMT)
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