TOP STORIES 
 
Meat Stocks Growing Amid Record Production -- Market Talk

15:26 ET -- Frozen stocks of red meat are building more quickly than expected. The USDA says that total supplies of pork in commercial freezers rose to 567.9M pounds in January, 16% above the previous month and 8% above the same time last year. Frozen-beef stocks rose 2%. Meat companies are due to produce more meat than ever this year, which analysts say likely will test the ability of consumers domestically and abroad to consume the extra supply. Government economists expect livestock prices to suffer this year amid the increase, and a buildup of supplies in freezers could exacerbate that. January pork belly stocks of 44.6 million pounds were more than 200% above the previous year's historic lows. (benjamin.parkin@wsj.com; @b_parkyn)

 
Pilgrim's Pours Some Cold Water on Organic Movement -- Market Talk

12:15 ET -- Food companies have a momentous task feeding a growing world population, says the CEO of chicken giant Pilgrim's Pride, and consumers should recognize that going organic won't get them there. Touting the poultry processor's investments in organic production, Bill Lovette says land will nevertheless constrain how far the shift can go. "It's not practical, it's not sustainable," he says. "We have to do a better job of talking to consumers and convincing them that our food production must change." (benjamin.parkin@wsj.com; @b_parkyn)

 
Wendy's Sales Miss Highlights Competitive Burger Climate -- Market Talk

10:09 ET -- Wendy's modest same-store sales miss in 4Q reflects the increasingly price-competitive fast food environment. Its North American same-store sales growth of 1.3% in 4Q lagged that of rivals McDonald's and Burger King. "We know we have to stay on our front foot and continue to play offense," Wendy's CEO Todd Penegor tells investors. Penegor says Wendy's has added more menu items to its 4 for $4 menu and that the company is also focusing on its premium-priced burgers. He said Wendy's will continue to emphasize in marketing that its hamburgers have always been made from fresh, not frozen, beef, as McDonald's rolls out burgers made with fresh beef this year. (julie.jargon@wsj.com)

 
   STORIES OF INTEREST 
 
Crumbling Infrastructure Catches Up with Cargill Plant -- Market Talk

11:53 ET -- Commodity giant Cargill says aging US infrastructure, once the envy of the world, is holding back American farmers and exporters. Chief Risk Officer Joe Stone points to Wyalusing, Penn, where a weak bridge forces truckers to take a more circuitous route when traveling to and from the company's beef plant. That's created about half a million dollars in additional cost, he says. A lack of funds to repair the bridge shows why a national infrastructure upgrade is urgent, Stone tells an audience at a USDA conference, also citing seaports that can't fit the latest large vessels: "These are really bottlenecks to our prosperity." (benjamin.parkin@wsj.com; @b_parkyn)

 
Livestock, Dairy Prices Expected to Slide in 2018 -- Market Talk

09:50 ET -- Livestock and dairy prices will likely tumble in 2018, the USDA says, as low and stable feed costs encourage record production. The agency expects hog prices to fall almost 5% to $48 per 100 pounds in 2018, Chief Economist Robert Johansson says at an annual agency conference, with steer prices down 2%. Factors like cheap feed and strong demand have encouraged farmers to ramp up herd sizes in recent years. Foreign markets will be increasingly important in absorbing the extra production, Johansson says. Milk prices, meanwhile, are expected to drop almost 10% in 2018 to $16.05 per 100 pounds. (benjamin.parkin@wsj.com; @b_parkyn)

 
   FUTURES MARKETS 
 
Cattle Futures Fall Ahead of Report -- Market Talk

14:41 ET -- Cattle futures fell for a second consecutive session as lower physical prices made traders reluctant to buy further. The market rallied last week, helped by a surge in cash prices. But, with feedyards accepting lower money for their herds on Wednesday at $128 per 100 pounds, some futures traders are betting the market has topped for the time being. Hog contracts, meanwhile, continue to rebound from recent lows. Participants are looking ahead to the USDA's monthly cold storage report at 3pm ET. CME February live cattle futures fell 1% to $1.2835 a pound, while April lean hog contracts rose 2% to 71.275 cents a pound. (benjamin.parkin@wsj.com; @b_parkyn)

 
   CASH MARKETS 
 
Zumbrota, Minn Hog Steady At $41.00 - Feb 22 
 
  Barrow and gilt prices at the Zumbrota, Minn., livestock market are 
steady at $41.00 per hundredweight. 
 
  Sow prices are steady. Sows weighing 400-450 pounds are at $47.00-$49.00, 
450-500 pounds are $47.00-$49.00 and those over 500 pounds are $51.00-$53.00. 
 
The day's total run is estimated at 150 head. 
 
Prices are provided by the Central Livestock Association. 
 
Estimated U.S. Pork Packer Margin Index - Feb 22 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Feb 22       +$25.56             +$ 37.77 
Feb 21       +$25.13             +$ 37.64 
Feb 20       +$25.16             +$ 38.99 
 
* 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  111.3 
      (Percent of Year-Ago)     Select  110.0 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Thursday rose $1.03 per hundred pounds, to $218.40, according to the USDA. Select-grade prices rose 14 cents per hundred pounds, to $212.06. The total load count was 98. Wholesale pork prices rose 6 cents, to $77.97 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

February 22, 2018 17:45 ET (22:45 GMT)

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