TOP STORIES

Some USDA Reports Delayed Due to Shutdown -- Market Talk

11:52 ET - The USDA is pushing back the release of certain reports due to the temporary government shutdown. The agency will release its cold storage report, which updates market participants on stocks of meat, dairy, fruit and vegetables in commercial freezers, on Wednesday at 3pm ET, a day later. The weekly export sales report is due on Friday morning rather than Thursday. The release of its chicken-and-eggs and milk production reports are also delayed by 24 hours. (benjamin.parkin@wsj.com; @b_parkyn)

Grain, Soybean Futures Trade Sideways

Grain and soybean markets were mixed Tuesday as prices hit selling pressure and buying interest dried up.

Wheat futures led losses, with the March-dated contract falling 1% to $4.21 1/2 a bushel at the Chicago Board of Trade. March corn futures fell 0.2% to $3.51 1/4 a bushel. March soybean contracts rose 0.2% to $9.86 1/4 a bushel.

STORIES OF INTEREST

Up to $800M in Profits at Stake in Monsanto Patent Dispute -- Market Talk

14:49 ET - Monsanto stands to lose $600M to $800M in earnings if the seed giant can't collect Brazilian royalties on its popular insect-repelling soybean genes, according to Bernstein analysts. Monsanto's battling a lawsuit launched by Brazilian farmers challenging Monsanto's patent for the soybean genetics, and the company suffered a blow when Brazil's patent office concluded it's invalid. If the Brazilian court rules against Monsanto, Bernstein figures seed distributors there may stop paying some royalties to Monsanto, risking profits on next year's seed sales. Bernstein sees this as a "minor negative" for Bayer's desire to close its purchase of Monsanto, but probably not a "linchpin issue." Monsanto shares rise 0.5%. (jacob.bunge@wsj.com; @jacobbunge)

Informa Trims U.S. Corn, Soybean Acreage Forecasts -- Market Talk

12:35 ET - Private forecaster Informa Economics lowered its projected corn and soybean plantings for 2018. It trimmed its corn estimate to 89.179M acres and put its soybean figure at 91.197M. Rising prices for cotton, sorghum and barley could prompt farmers to plant more of those crops at the expense of corn and soybeans, says Michael McDougall of ED&F Man. CBOT March corn futures fall 0.6% to $3.49 3/4 a bushel. March wheat slides 0.9% to $4.21 3/4 while March soybeans are little changed at $9.84 1/4 a bushel. (benjamin.parkin@wsj.com; @b_parkyn)

FUTURES MARKETS

Cattle Futures Bounce; Hogs Wobble on Nafta Jitters

Cattle futures climbed to the highest close in 11 weeks, supported by rising prices for beef and physical cattle.

Cash prices for slaughter-ready cattle jumped around $3 late last week. Market observers said they expected some of that strength to carry over into this week, particularly after a snowstorm in parts of western and northern cattle country disrupted trade and potentially stressed cattle being fattened in feedlots.

CASH MARKETS

 
Zumbrota, Minn Hog Steady $44.00 - Jan 23

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $44.00 per hundredweight. Sow prices are steady. Sows weighing 400-450 pounds are at $36.00-$37.00, 450-500 pounds are $36.00-$37.00 and those over 500 pounds are $40.00-$42.00.

The day's total run is estimated at 100 head.

Prices are provided by the Central Livestock Association.

 
Estimated U.S. Pork Packer Margin Index - Jan 23 
 
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 
                                      * 
Jan 23       +$21.20             +$ 46.00 
Jan 22       +$19.29             +$ 44.52 
Jan 19       +$18.32             +$ 42.80 
 
* 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  107.9 
      (Percent of Year-Ago)     Select  107.1 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Tuesday rose $1.78 per hundred pounds, to $206.85, according to the USDA. Select-grade prices rose 64 cents per hundred pounds, to $200.16. The total load count was 110. Wholesale pork prices rose 69 cents, to $81.80 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

January 23, 2018 17:44 ET (22:44 GMT)

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