LIVESTOCK HIGHLIGHTS: Top Stories of the Day
June 13 2018 - 6:01PM
Dow Jones News
TOP STORIES
Tariffs Further Pinch Consumer-Staple Stocks -- Update
Escalating trade tensions have made times even harder for shares
of companies that provide everyday goods.
Already struggling with pricing pressures and sluggish growth,
the fortunes of consumer-staple companies in the S&P 500 were
further shaken after Canada, Mexico and the European Union
retaliated against the U.S.'s imposition of tariffs on steel and
aluminum imports.
Canadian Prime Minister Justin Trudeau pledged to impose
billions of dollars of tariffs on steel, aluminum and other U.S.
goods, such as food and agricultural products. Mexico's Economy
Ministry is targeting lamps, berries, grapes, apples, cold cuts,
pork chops and cheese products, among other goods the U.S. produces
and sends there. The EU will start imposing EUR2.8 billion worth of
tariffs in July, including 25% levies on peanut butter, orange
juice and cranberries, among other goods.
STORIES OF INTEREST
Kroger Scaling Down in Competitive NC Market -- Market Talk
15:13 ET - Kroger's Mid-Atlantic business entity is pulling out
of the Raleigh-Durham market in August, selling all 14
Kroger-branded stores employing 1,500 workers, the company says.
However, Kroger could maintain some presence in Raleigh, as its
Harris Teeter banner--a separate business entity within Kroger--is
expected to buy eight of the closing stores and convert them to
fancier Harris Teeter stores. Raleigh-Durham is one of the most
competitive markets in the U.S., with deep discounters and
higher-end grocery chains both expanding there. "We have not been
able to grow our business the way we would like in this market,"
says division president Jerry Clontz, adding that many retail
analysts say the market has too many grocery stores. Kroger reports
earnings next week, and shares are up 2.1% to $26.23.
(heather.haddon@wsj.com; @heatherhaddon)
Trade-Sensitive Stocks Slide on Tariff Report -- Market Talk
15:46 ET - Shares of companies that investors believe are
vulnerable to tightening trade policies are sliding as a report
suggests the Trump administration could levy tariffs on tens of
billions of dollars of Chinese goods in the coming week. Senior
trade officials have agreed that the U.S. should move forward with
the tariffs, people briefed on the talks told WSJ. Investors and
analysts have worried that the moves could trigger retaliatory
trade measures that crimp profits at U.S. firms. Farm-machinery
maker Deere off 2.9%, while Boeing down 1.6% and Caterpillar off
1.7%. Polaris, which relies on steel and aluminum to make off-road
vehicles, was down 0.6%. (akane.otani@wsj.com)
FUTURES MARKETS
Hog Futures Rally on Improving Supply-Demand Outlook -- Market
Talk
15:09 ET - Hog futures continued a recent rally sparked by
tighter supplies and solid demand. Meatpackers have paid more for
pigs to slaughter in recent days, with average prices rising $1.27
to $79.17 per 100 pounds on Tuesday. The rally has been helped by
falling hog weights, Midwest Market Solutions says, prompting a
seasonally tight patch that has given producers more leverage to
raise their asking prices. Wholesale pork prices, meanwhile, have
also recently risen. All that has futures traders betting the hog
market has higher to go. CME June lean hog contracts rose 0.6% to
81c a pound. June-dated cattle futures fell 0.6% to $.107925 a
pound. (benjamin.parkin@wsj.com; @b_parkyn)
CASH MARKETS
Zumbrota, Minn Hog Steady at $50.00 - Jun 13
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are steady at $50.00 per hundredweight.
Sow prices are $2.00-$4.00 higher. Sows weighing 400-450 pounds
are at $32.00-$34.00, 450-500 pounds are $32.00-$34.00 and those
over 500 pounds are at $36.00-$38.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Jun 13
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Jun 13 -$ 6.84 +$43.90
Jun 12 -$ 4.47 +$42.97
Jun 11 -$ 4.79 +$40.00
* 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 89.2
(Percent of Year-Ago) Select 91.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.02 per
hundred pounds to $223.90, according to the USDA. Select-grade
prices fell $1.09 per hundred pounds to $202.30. The total load
count was 144. Wholesale pork prices rose 43 cents to $80.82 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 13, 2018 17:46 ET (21:46 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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