Livestock Highlights: Top Stories of the Day
December 13 2017 - 6:09PM
Dow Jones News
TOP STORIES
Farmers Circle Wagons to Save $100-a-Cow Tax Deduction
Farmers and ranchers are pushing back on an aspect of the
proposed U.S. tax overhaul that could eliminate a widely used
deduction when much of the U.S. agriculture sector is
struggling.
The tax bills passed by the Senate and the House of
Representatives both eliminated a provision in the U.S. tax code
that allows members of agricultural cooperatives to reduce their
taxable income by deducting some co-op costs.
Grocery Stores Launch New Chicken Lawsuit -- Market Talk
11:28 ET -- A long-running controversy over chicken pricing
hatches another lawsuit, as a group of grocery store operators and
distributors sue the biggest U.S. chicken processors over alleged
collusion. The plaintiffs, which run and service more than 1,700
grocery stores across the country, filed a lawsuit in federal court
in Illinois seeking damages related to poultry meat purchases from
2008 through 2016, during which time they say chicken companies
surreptitiously reduced production and manipulated a pricing index
maintained by Georgia's Agriculture Department, inflating prices
for shrink-wrapped chicken breasts and wings. A Tyson spokesman
calls the claims "unfounded because we've not done anything wrong."
A Perdue Farms spokeswoman declines to comment; officials with
Pilgrim's Pride and Sanderson Farms don't respond to requests for
comment. (jacob.bunge@wsj.com; @jacobbunge)
Big Food Sales Volumes Aren't As Bad As Summer -- Market Talk
13:37 ET -- Wall Street analysts say packaged food sales
continue to be pressured over the past three months, according to
sales data from Nielsen, but trends have improved since the summer.
Total food and beverage sales volumes were down for the 12 weeks
ended Dec 2. RBC Capital Markets analyst David Palmer attributes
the success to the reversal of fresh food-deflation headwinds and
easier comparisons against a year ago when they were taking out
lackluster items and offering fewer promotions, as the biggest
"drivers of the recent center-store grocery and Big Food
improvement." (annie.gasparro@wsj.com)
STORIES OF INTEREST
Target to Buy Grocery Delivery Startup Shipt for $550 Million
Target Corp. is paying $550 million to acquire grocery delivery
startup Shipt Inc., moving to match services that have been rolled
out by rivals Amazon.com Inc. and Wal-Mart Stores Inc.
Shipt, like rival Instacart, uses thousands of contractors to
buy products at retail stores and deliver them to customers. It
charges a $99 membership fee and its shoppers buy products from
local stores, including grocers like Kroger Co. and Costco
Wholesale Corp. Shipt typically sells items at a slight premium to
the in-store price, and charges delivery fees for orders of less
than $35.
FUTURES MARKETS
Cattle Futures Resume Losing Streak, Supplies Weigh on Prices
Cattle futures fell, giving back early gains as growing supplies
weighed down prices.
Market observers said more cattle on feed are reaching slaughter
size, meaning a larger supply of fattened animals ready for
processing into beef. That is allowing meatpackers to lower bids
and push cash prices lower for physical cattle.
December-dated live cattle futures fell 0.4% to $1.1565 a pound
at the Chicago Mercantile Exchange on Wednesday, after opening
higher. Prices rose on Tuesday for the first time after eight
consecutive sessions lower.
Hog futures rose, despite pressure on both cash and meat prices.
CME December lean hog contracts gained 0.3% to 63.95 cents a
pound.
CASH MARKETS
Zumbrota, Minn Hog Steady At $36.00 - Dec 13
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $36.00 a 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 13
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Dec 13 +$35.91 +$33.23
Dec 12 +$43.43 +$42.82
Dec 11 +$42.01 +$43.96
* 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 106.8
(Percent of Year-Ago) Select 106.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.58 per
hundred pounds, to $202.48, according to the USDA. Select-grade
prices fell 90 cents per hundred pounds, to $185.02. The total load
count was 153. Wholesale pork prices fell $4.46, to $75.86 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
December 13, 2017 17:54 ET (22:54 GMT)
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