TOP STORIES 
 
Cattle Supplies Growing Faster Than Expected -- Market Talk

15:13 ET -- Feedlot operators are fattening more cattle in their lots than expected. The total number of cattle on-feed as of March 1 rose to 11.7M head, 9% above the same time a year earlier. That was also higher than average analyst estimates of 8%. Cattle placed in lots for fattening in February, however, rose 7% -- well above the pre-report average of 4%. Both those figures suggest that supplies are large and will continue to grow as more cattle reach their requisite slaughter weight. Anticipation of large supplies has recently pressured prices. Cattle marketed in February, or send to slaughterhouses, rose 2%, above average estimates of 1%. (benjamin.parkin@wsj.com; @b_parkyn)

 
China's Tariff Impact Neutral for Hormel -- Market Talk

15:38 ET -- Hormel Foods sees the impact so far of China's tariffs on U.S. pork and other agricultural products as neutral for the Spam maker. The Minnesota protein company doesn't export pork to China, though it does maintain a handful of plants in that country that process pork raised by Chinese farmers, a Hormel spokesman says. In the short term, China's tariffs could put downward pressure on soybean meal prices, in Hormel's view, which could help the company's Jennie-O Turkey Store operations, where soybean meal is used for feed. (jacob.bunge@wsj.com; @jacobbunge)

 
Trade Conflict Hits Agriculture Commodities

LONDON -- Agricultural commodities sold off Friday as investors anticipated escalating trade tensions would hit Chinese demand for U.S. exports like soybeans and corn. The Trump administration said it would impose tariffs on tens of billions of dollars of Chinese imports on top of duties on steel and aluminum imports. China's commerce ministry responded Friday by announcing it would levy tariffs against $3 billion worth of U.S. goods including pork and recycled aluminum.

 
   STORIES OF INTEREST 
 
Conagra Rises To The Challenge -- Market Talk

11:27 ET -- Consumers have responded well to Conagra's investments in new products and more effective marketing for brands like Healthy Choice, as comparable sales trends are accelerating, RBC analyst David Palmer says. The better-than-expected results released yesterday give him confidence that Conagra can manage the tough food and retail landscape, after two years of an overhaul of its business under CEO Sean Connolly who also sold off its private-label business, spun off a food-service unit, moved its headquarters to Chicago from Omaha, and improved it supply chain efficiency. "Such change provides opportunities to stumble--or distraction in the face of cost pressure. However, Conagra has avoided serious setbacks," Palmer said. Shares rise 2.2% to $36.22. (annie.gasparro@wsj.com)

 
   FUTURES MARKETS 
 
Hog Futures End Woeful Week With China Tariffs -- Market Talk

14:52 ET -- China's proposal to slap tariffs of 25% on US pork rocked lean hog futures, which fell almost 5% on Friday. The hog market, which is trading at a five-month low, is down 15% from last week. China is an important consumer of US pork, and traders are concerned that disruption to exports could mean larger supplies at home. Cattle futures were also dragged lower, though beef exports to China are small and unaffected by the tariffs. Traders are instead looking ahead to the USDA's monthly cattle on-feed report at 3pm ET, which they expect to indicate larger supplies to come. CME April lean hog futures fall 4.7% to 58.425 cents a pound. April live cattle futures fall 1.8% to $1.1605 a pound. (benjamin.parkin@wsj.com; @b_parkyn)

 
   CASH MARKETS 
 
Estimated U.S. Pork Packer Margin Index - Mar 23 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Mar 23       +$32.36              +$21.15 
Mar 22       +$29.63              +$20.87 
Mar 21       +$28.96              +$22.83 
 
* 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  100.7 
      (Percent of Year-Ago)     Select  100.4 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Friday fell $2.12 per hundred pounds, to $223.09, according to the USDA. Select-grade prices fell $1.62 per hundred pounds, to $216.40. The total load count was 109. Wholesale pork prices rose 13 cents, to $70.24 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

March 23, 2018 18:18 ET (22:18 GMT)

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