LIVESTOCK HIGHLIGHTS: Top Stories of the Day
February 23 2018 - 5:49PM
Dow Jones News
TOP STORIES
Cattle Supplies Growing Faster Than Expected -- Market Talk
15:12 ET - Cattle supplies continue to swell more quickly than
anticipated. The USDA says that the total number of cattle being
fattened in feedlots as of Feb. 1 rose to 11.6M head, 8% higher
than a year earlier. That was slightly above an average of
pre-report estimates. The number of cattle placed in feedlots in
January rose well above expectations, however, at 4%. Analysts on
average expected to see a 1% increase. That likely means larger
supplies of slaughter-ready cattle in the months to come, which
could pressure cash-market prices. Cattle marketed in January, or
sent to slaughterhouses, rose 6%, in line with expectations.
(benjamin.parkin@wsj.com; @b_parkyn)
General Mills to Buy Pet-Food Maker Blue Buffalo For About $8
Billion -- 5th Update
General Mills Inc., burdened with stagnant sales of cereal and
yogurt, is paying around $8 billion for a pet-food business to help
it generate revenue growth in the U.S.
The Minneapolis-based food conglomerate, which hasn't sold pet
food since the 1960s, said Friday it plans to buy Blue Buffalo Pet
Products Inc. as it looks for a piece of the rapidly expanding
natural pet-food market.
STORIES OF INTEREST
Tyson Foods Shifting Away from Customized Business
Applications
Tyson Foods Inc. is working to standardize its business
applications and embrace open source software as it works to keep
up with its digital-native competitors.
About 55% of the meat company's application stack is
custom-developed, "which is kind of unheard of," said Scott
Spradley, Tyson's chief technology officer. His team is working on
a plan to significantly reduce that number and keep custom apps for
"just those things that are distinctly our competitive
advantage."
FUTURES MARKETS
Cattle Futures End Week Lower; Await Supply Report -- Market
Talk
14:44 ET - Cattle futures fell on Friday ahead of a monthly
supply report at 3pm ET. The USDA said that beef export sales of
9,300 metric tons in the week ended Feb 15 were down 10% from the
previous week and over 50% from the four-week average. Beef
producers are relying on exports to help offload this year's
expected record beef production. Lower cash prices for physical
cattle this week, meanwhile, have also weighed on the market. CME
February live cattle futures fall 0.3% to $1.28 a pound, down 2%
for the week. April lean hog contracts rise 0.1% to 71.375 cents a
pound. (benjamin.parkin@wsj.com; @b_parkyn)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Feb 23
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Feb 23 +$28.92 +$38.95
Feb 22 +$25.56 +$37.77
Feb 21 +$25.13 +$37.64
* 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 109.8
(Percent of Year-Ago) Select 108.9
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell 3 cents per
hundred pounds, to $218.37, according to the USDA. Select-grade
prices rose 76 cents per hundred pounds, to $212.82. The total load
count was 74. Wholesale pork prices rose 55 cents, to $78.52 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
February 23, 2018 17:34 ET (22:34 GMT)
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