LIVESTOCK HIGHLIGHTS: Top Stories of the Day
December 12 2017 - 5:47PM
Dow Jones News
TOP STORIES
Crop Stockpiles Grow as U.S. Exports Stall
U.S. farmers look set to export less soybeans and wheat than
expected this year, exacerbating a surplus that has weighed on crop
prices and farm incomes.
The U.S. Department of Agriculture on Tuesday trimmed its
forecasts for soybean and wheat exports for 2017-2018 by 25 million
bushes per crop, to 2.23 billion bushels and 975 million bushels
respectively.
STORIES OF INTEREST
Egypt Buys 295,000 Tons of Wheat, Not All of It Russian
LONDON--Egypt's state grain buyer, the General Authority for
Supply Commodities (GASC), bought 295,000 metric tons of wheat in
its latest tender, traders said Tuesday.
The deal comprises four 60,000-ton cargoes and one 55,000-ton
cargo of Russian and Romanian wheat.
Russian Wheat Offered at Lowest Price in GASC Wheat Tender
LONDON--Egypt's state grain buyer received at least 10 offers in
its latest wheat tender, with Russian grain again offered at the
lowest price excluding shipping costs, traders said Tuesday.
The lowest raw offer submitted to the General Authority for
Supply Commodities was for Russian wheat from trading house Daewoo,
and came in at $192.45 a metric ton excluding shipping fees,
traders said. That offer was also the least expensive when shipping
fees were factored in, taking the total cost to $206.85 a ton.
Cotton Futures Higher Ahead of Government Update -- Market
Talk
11:42 ET - Cotton futures are up 1.5% at 74.13 cents a pound in
the March contract as the market prepares for today's release of
the USDA's world agricultural supply and demand projections for the
fiber. Louis Rose at Rose Commodity Group says the market will be
looking for US and world stockpiles of cotton this year to be
projected at 5.7 million bales and 89.8 million bales,
respectively, versus last month's estimate of 6.1 million bales and
90.9 million bales. But he's betting that the market is
underestimating those figures. John Robinson at Texas A&M has
describe the cotton market as "a tug of war between the big
crop/excess production viewpoint and the good/improving demand
viewpoint." March raw sugar is off 1.4% at 13.76 cents a pound,
cocoa for March lost 1.2% at $1,871 a ton, March arabica coffee
loses 0.7% at $1.192 a pound and January FCOJ is off 0.8% at $1.498
a pound. (julie.wernau@wsj.com)
FUTURES MARKETS
Cattle Futures Rise, Reversing Course -- Market Talk
14:55 ET - Cattle futures bounced on Tuesday, ending eight
consecutive sessions lower. The market was due for a correction,
analysts said, after fund selling pushed prices 4% lower in the
first week of December. Stagnant beef prices and falling cash
prices for physical cattle added to the pressure. Analysts largely
expect those trends to continue this week, though wholesale beef
prices rose slightly at midday. CME December live cattle futures
rose 0.9% to $1.1615 a pound. Hog futures were mixed as wholesale
pork prices fell. CME December lean hog contracts rose 0.2% to
63.75 cents a pound while later months fell.
(benjamin.parkin@wsj.com; @b_parkyn)
CASH MARKETS
Zumbrota, Minn Hog Steady At $36.00 - Dec 12
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $36.00 per hundredweight.
Sow prices are steady. Sows weighing 400-450 pounds are at
$28.00-$30.00, 450-500 pounds are $28.00-$30.00 and those over 500
pounds are $32.00-$34.00.
The day's total run is estimated at 200 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Dec 12
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
*
Dec 12 +$43.43 +$ 42.82
Dec 11 +$42.01 +$ 43.96
Dec 8 +$45.49 +$ 48.17
* 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 108.0
(Percent of Year-Ago) Select 108.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $1.47 per
hundred pounds, to $204.06, according to the USDA. Select-grade
prices rose 26 cents per hundred pounds, to $185.92. The total load
count was 135. Wholesale pork prices fell 53 cents, to $80.32 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
December 12, 2017 17:32 ET (22:32 GMT)
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