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TOP STORIES

Truck Driver Salaries Rising on Surging Freight Demand

Wages and benefits for truck drivers are rising in the U.S. as tight freight-hauling capacity falls short of surging demand.

The American Trucking Associations, a trade group that represents fleet owners, said annual truck-driver salaries rose between 15% and 18% from 2013 to 2017, with growth varying based on the type of fleet and the nature of the routes.

General Mills Inc. said this month its freight costs had soared to near 20-year highs in February, cutting into margins for its cereals and other foods. Tyson Foods Inc., Hormel Foods Corp. and B&G Foods Inc., have also said recently that higher freight costs were driving down their earnings, and consumers would see that reflected in food prices.

STORIES OF INTEREST

Chinese Tariffs on U.S. Soybeans Would Curb Output -- Market Talk

15:00 ET - U.S. farmers would pull back the throttle on soybeans if China imposes tariffs on the oilseeds, hurting exports, according to a study by Purdue University. Economists at Purdue say U.S. soybean exports to China could fall as much 71% if China placed a 30% retaliatory tariff on U.S. supplies. In that scenario, total U.S. soybean shipments could drop by 40%, prices for the crop could fall by 5% over a few-year period and U.S. production could drop by 17%, the study showed. That would mark a reversal of a years-long trend, potentially offering a boost to other big soybean growers like Brazil and Argentina, and could result in annual U.S. economic losses totaling as much as $3.3 billion. (jesse.newman@wsj.com; @jessenewman13)

FUTURES MARKETS

Hog Futures Diverge on Shifting Supply Expectations

Hog futures were split on Wednesday, with front-month contracts falling while those for delivery in later months rose.

April-dated futures for lean hogs fell 1.4% to 56.925 cents a pound at the Chicago Mercantile Exchange, weighed down by falling physical hog and pork prices. The most-active June contract, however, rose 3.5% to 76.625 cents a pound as traders bet that the supply outlook would improve in the months to come.

Cattle futures, meanwhile, rose after sustaining sharp recent losses. CME April live cattle contracts gained 0.5% to $1.16 a pound.

CASH MARKETS

 
Zumbrota, Minn Hog $2.00 Lower At $33.00 - Mar 28 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market are $2.00 lower at $33.00 per hundredweight.

Sow prices are steady. Sows weighing 400-450 pounds are at $30.00-$31.00, 450-500 pounds are $30.00-$31.00 and those over 500 pounds are $33.00-$35.00.

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 - Mar 28 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Mar 28       +$38.44              +$19.21 
Mar 27       +$36.83              +$19.56 
Mar 26       +$35.80              +$21.47 
 
* 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  102.2 
      (Percent of Year-Ago)     Select  100.7 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Wednesday fell 78 cents per hundred pounds to $221.62, according to the USDA. Select-grade prices fell $2.61 per hundred pounds to $211.63. The total load count was 144. Wholesale pork prices fell 16 cents to $69.34 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

March 28, 2018 17:40 ET (21:40 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.