LIVESTOCK HIGHLIGHTS: Top Stories of the Day
November 22 2017 - 5:38PM
Dow Jones News
TOP STORIES
Soybean Futures Rise Before Thanksgiving
Soybean futures led gains ahead of the Thanksgiving break,
helped by moves in the U.S. dollar and crude oil.
The WSJ Dollar Index, which measures the greenback against a
basket of currencies, fell 0.8% to 86.59. Those losses made U.S.
crops more affordable for global buyers. Higher crude oil prices,
meanwhile, attracted investors to agricultural markets.
Soybean futures for January rose 0.8% to $9.97 1/4 a bushel at
the Chicago Board of Trade.
Corn and wheat futures were mixed. CBOT December wheat fell 0.5%
to $4.22 3/4 a bushel while December corn rose 0.1% to $3.45 1/4 a
bushel
STORIES OF INTEREST
Dollar, Crude Lift Oilseed Futures -- Market Talk
13:12 ET - Higher crude oil prices and a falling US dollar
attract investors to agricultural markets, supporting grain and
soybean futures. Soybean futures lead gains, with analysts pointing
to a seasonal tendency to rise ahead of Thanksgiving. Over the past
42 years, soybeans have rallied 74% of the time the day before
Thanksgiving, Karl Setzer of MaxYield Cooperative says. CBOT
January soybean futures rise 0.8% to $9.97 a bushel. Grain prices
are mixed. December wheat contracts fall 0.2% to $4.24 a bushel,
with later months higher, while December corn futures rise 0.1% to
$3.45 1/4. (benjamin.parkin@wsj.com; @b_parkyn)
ABF Falls as UBS Cuts Earnings Per Share Forecast -- Market
Talk
1248 GMT - Shares in Associated British Foods PLC drop, topping
the list of FTSE 100 Index fallers after UBS downgrades its 2018
earnings forecasts on the food ingredient supplier and owner of
clothing chain Primark. The Swiss investment bank reduces its
earnings per share estimate for the year to September 2018 by about
1% to 135 pence from 136 pence, with the impact of lower sugar
profit not fully offset by a 2% upgrade to Primark profit. Still,
UBS, which has a neutral rating on ABF, notes that the company had
an excellent 2017 and Primark has plenty of scope for expansion. It
increases its price target to 3150 pence from 2900 pence. Shares in
ABF fall 1.36% to 3055 pence. (philip.waller@wsj.com)
Sodexo Margin Expected to Improve in 2019 and Beyond: UBS --
Market Talk
1140 GMT - Sodexo's margin is expected to improve in 2019 and
beyond, UBS says, given benefits from changes made to its U.S.
healthcare and education business, as well as its now complete
organizational restructuring. France starting to recover and Brazil
stabilizing, improvement in the energy and resource sector and
economies of scale should also help, the bank says. Denis Machuel,
to become Sodexo's Chief Executive in January 2018, isn't likely to
change its strategy, UBS says, noting that a capital markets day in
summer 2018 could shed some light into how he plans to add value.
Target price is raised to EUR123.5 from EUR122. Shares trade at
EUR106.3, down 1.5%. (marc.bisbalarias@dowjones.com; @bamarc)
FUTURES MARKETS
Hog, Cattle Futures Bounce; Pork Belly Stocks Rise
Hog futures surged to a two-week high on Wednesday as a
government report showed falling pork stocks.
The U.S. Department of Agriculture said in a monthly report that
stocks of frozen pork fell to 597.3 million pounds on Oct. 31, down
3% from a month earlier and slightly lower than the same time last
year.
Lean hog futures for December rose 3.5% to 62.825 cents a pound
at the Chicago Mercantile Exchange, the highest close since Nov.
9.
CME December live cattle futures rose 0.9% to $1.1905 a
pound.
CASH MARKETS
Zumbrota, Minn Hog Steady At $35.00 - Nov 22
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $35.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are
$36.00-$38.00, 400-450 pounds are at $36.00-$38.00, 450-500 pounds
are $36.00-$38.00 and those over 500 pounds are $41.00-$43.00.
The day's total run is estimated at 125 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Nov 22
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Nov 22 +$46.27 +$43.92
Nov 21 +$44.53 +$42.28
Nov 20 +$49.26 +$45.96
* 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 112.6
(Percent of Year-Ago) Select 111.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose 38 cents per
hundred pounds, to $209.01, according to the USDA. Select-grade
prices fell 1 cent per hundred pounds, to $188.64. The total load
count was 173. Wholesale pork prices rose 76 cents, to $80.83 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
November 22, 2017 17:23 ET (22:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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