LIVESTOCK HIGHLIGHTS: Top Stories of the Day
November 17 2017 - 5:49PM
Dow Jones News
TOP STORIES
October Cattle Placements Rise Above Expectations -- Market
Talk
15:18 ET - Feedyards placed more cattle in lots for fattening in
October than expected, according to the USDA. Cattle placements of
2.39M were 10% higher than a year earlier, above average prereport
estimates of an 8% increase. That suggests that supplies of cattle
heading to slaughterhouses in the first half of next year will rise
more than expected, and likely increase pressure on the cash market
for physical cattle. Total cattle on-feed on Nov. 1 of 11.3M were
6% higher than a year earlier, in line with expectations. Cattle
marketed, or sent to slaughterhouses, in October rose 6%
year-over-year, also in line with expectations.
(benjamin.parkin@wsj.com ; @b_parkyn)
Sysco, SpartanNash Raise Dividends as Prices Rise -- Market
Talk
9:10 ET - Sysco becomes the second food distributor this week to
raise its dividends as the sector struggles with food price
inflation. Houston-based distributor approves a 9% increase in the
quarterly cash dividend to 36 cents from 33 cents a share.
SpartanNash said Thursday that it would repurchase up to $50M of
its stock, prompting shares to rally 8%. Food distributors are
struggling with rising wholesale food prices.
(heather.haddon@wsj.com; @heatherhaddon)
STORIES OF INTEREST
Unease over Nafta Growing in the Farm Belt -- Market Talk
13:50 ET - Worry is mounting in rural America as Nafta
negotiations drag on and farmers continue to trudge through a
multiyear downturn in the farm economy. If Trump withdraws from the
trade pact--which he has threatened to do--it would be an "enormous
blow" to the U.S. farm sector, Piper Jaffray says, adding the
agreement has offered farmers a ready destination for their corn
and other commodities during a time when many are just breaking
even or losing money. "A disruption with NAFTA could send grain
prices in a spiral," the firm says, adding that farm machinery and
agricultural supply companies would also suffer "if we were to lose
export demand and send ag into a depression."
(jesse.newman@wsj.com; @jessenewman13)
FUTURES MARKETS
Cattle Placements Rose Above Expectations in October
Feedlots placed more cattle than expected in lots for fattening
last month, suggesting that beef supplies will continue to grow
next year.
Cattle futures for December closed 0.6% lower at $1.1885 a pound
at the Chicago Mercantile Exchange before the cattle on-feed report
was released Friday afternoon. Futures fell 1.4% over the week.
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Nov 17
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Nov 17 +$44.14 +$ 42.20
Nov 16 +$42.83 +$ 41.62
Nov 15 +$40.79 +$ 41.23
* 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 113.5
(Percent of Year-Ago) Select 112.0
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell $3.00 per hundred
pounds, to $207.24, according to the USDA. Select-grade prices rose
2 cents per hundred pounds, to $187.85. The total load count was
158. Wholesale pork prices rose 27 cents, to $80.03 a hundred
pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
November 17, 2017 17:34 ET (22:34 GMT)
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