TOP STORIES

Red Meat Supplies Grow, USDA Says -- Market Talk

16:24 ET - Beef and pork are piling up in US storage facilities, the USDA says in its monthly report on cold-storage meat supplies. Total red meat in cold storage in March was 7% higher than the prior-year period and 1% higher than February's level, mainly driven by surging pork supplies --in particular bellies, used to make bacon, which zoomed 21% from February levels and 188% over last year's diminished supplies. Elsewhere in pork, the amount of boneless hams in storage has climbed to a record high this year, along with chicken meat. (jacob.bunge@wsj.com; @jacobbunge)

Cheesy Compromise in Mexico-EU Trade Agreement -- Market Talk

12:22 ET - Mexico's dairy industry chamber is celebrating the agreement-in-principle reached over the weekend to update the EU-Mexico free trade agreement. Local cheese makers will still be able to use the name "manchego" for cheese made with cow's milk, while Europe keeps the designation of origin for the "manchego" cheese made with sheep's milk--a jealously guarded type of mature cheese from Spain's La Mancha region. The European Commission, meanwhile, notes improved market access for European dairy products to Mexico, including a 20K ton quota phased in over five years for mature cheeses and 5K tons for fresh cheeses. (anthony.harrup@wsj.com)

STORIES OF INTEREST

Danone's 1Q Organic Growth Bodes Well for Rest of Year: UBS -- Market Talk

0946 GMT - Danone's first-quarter organic sales growth, driven by a beat in all four divisions, bodes well for the rest of the year, say analysts at UBS. The bank says the key investment questions now are whether Danone's dairy division will accelerate enough to make up for the expected slowdown in specialized nutrition during the second half, whether Danone's EBIT margin progress will be strong enough to sustain EPS growth and whether Danone might sell its fresh-foods business to boost deleveraging. "We think the market would likely take it as an incremental positive", says UBS on a potential sale of the fresh-foods business. Danone shares trade down 1.5% at EUR65.42. (anthony.shevlin@dowjones.com)

Nestle's Pricing to Remain Soft in 2018: Berenberg -- Market Talk

0833 GMT - Nestle's weak pricing during the first quarter was evident in its slight increase of just 0.2%, and analysts at Berenberg expect the trend of softer pricing to continue for the rest of the year. The brokerage says Nestle is being hit by deflation in Brazil--especially its dairy and confectionary businesses--but that similar pricing woes are occurring in Russia and sub-Saharan Africa. "Raw material prices are modest and are unlikely to drive prices this year," says Berenberg. Nestle shares trade down 0.8% at CHF74.62. (anthony.shevlin@dowjones.com)

FUTURES MARKETS

Cattle Futures Tread Higher on Slimming Supplies; Hogs Fall

CHICAGO--U.S. cattle futures advanced after feedlots signaled they would scale back expansion, while hog futures dropped on renewed concerns over U.S. trade policy.

June-dated live-cattle contracts settled 1.1% higher at $1.0487 a pound Monday at the Chicago Mercantile Exchange, lifted by a U.S. Department of Agriculture report Friday that showed a 9% year-over-year decline in the number of cattle placed onto U.S. feedlots for fattening last month.

CASH MARKETS

 
Zumbrota, Minn Hog $2.00 Higher At $35.00 - Apr 23 
 
  Barrow and gilt prices at the Zumbrota, Minn., livestock market are 
$2.00 higher at $35.00 per hundredweight. 
 
  Sow prices are steady. Sows weighing 400-450 pounds are at $33.00-$35.00, 
450-500 pounds are $33.00-$35.00 and those over 500 pounds are $37.00-$39.00. 
 
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 - Apr 23 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Apr 23       +$14.71             +$ 14.12 
Apr 20       +$14.75             +$ 14.40 
Apr 19       +$14.84             +$ 15.26 
 
* 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   98.4 
      (Percent of Year-Ago)     Select   98.7 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Monday rose $3.13 per hundred pounds, to $215.11, according to the USDA. Select-grade prices rose $1.59 per hundred pounds, to $201.72. The total load count was 114. Wholesale pork prices fell 13 cents, to $66.97 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

April 23, 2018 17:39 ET (21:39 GMT)

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