LIVESTOCK HIGHLIGHTS: Top Stories of the Day
June 18 2018 - 5:51PM
Dow Jones News
TOP STORIES
Corn, Soybean Growth Excels -- Market Talk
16:35 ET - This year's corn and soybean crop continues to excel.
USDA says that 78% of the corn crop was in good or excellent
condition as of Sunday, giving a 73% good-or-excellent rating to
soybeans. Both were up from 67% last year, and largely in line with
expectations. Good US weather conditions have set the growing
season off to a strong start, with more beneficial rain forecast
for the Midwest this and next week. That has in turn pressured
prices, though analysts say it's too early to tell how the soybean
and corn bounties will look when they're harvested later this year.
(benjamin.parkin@wsj.com; @b_parkyn)
Split-Ticket Farm Voters Mull Midterms -Market Talk
16:58 ET - Trade disputes on multiple fronts with major
importers of U.S. farm products could become an election matter in
farm country as midterms loom. Farmers by and large went for
President Trump in 2016, but in the past they've played both sides
of the aisle: Democrats have been viewed as friendlier toward
biofuel policy and farm support programs, while Republicans favor
lower taxes and looser regulation. Michael Petefish, a Minnesota
soybean farmer who's voted for both Democrats and Republicans --
including President Trump -- says farmers have considered
Republicans reliable on free trade, but "Trump has flipped that
script a bit." Soybean futures expiring in November have dropped
11% since the start of the month, ahead of China outlining tariffs
on US soybeans last week in response to planned US duties on
Chinese goods. (jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
EU Pursues Trade Talks With Australia in Wake of U.S.
Tariffs
BRUSSELS -- The European Union and Australia launched free-trade
negotiations Monday, part of a push by U.S. allies world-wide to
bolster economic links and counter fallout from President Donald
Trump's "America First" policies.
European Trade Commissioner Cecilia Malmstrom arrived this week
in Canberra, Australia, advancing the EU's global trade offensive
after the Group of Seven summit in Canada that left other Western
leaders dismayed about Mr. Trump's protectionist measures.
U.S.-China Trade Standoff Weighs on Stocks
The Dow Jones Industrial Average fell Monday as escalating trade
tensions between the U.S. and China weighed on investors' appetite
for risk.
Last week's back-and-forth over tariffs exacerbated worries
among investors that the world's two biggest economies could
descend into a trade war.
Concerns about the fate of the North American Free Trade
Agreement and tariffs that the Trump administration imposed on
European allies also are adding to investor anxiety.
FUTURES MARKETS
Livestock Futures Start Week on Firm Footing -- Market Talk
14:49 ET - Livestock futures were mostly higher as markets rode
a seasonal boost. Hot summer temperatures typically slow cattle and
hog growth, while demand for red meat picks up ahead of July 4.
With physical prices climbing handsomely last week, meatpackers are
slowing slaughter activity and producing less pork. Last week's
physical trade for cattle, meanwhile, was lighter than usual.
Analysts say that packers are well supplied, giving them more
leverage to hold out for lower prices in the cash trade. CME July
lean hog futures rise 2.5% to 83.725 cents a pound. June live
cattle futures fall 0.1% but the more-active August contract rises.
(benjamin.parkin@wsj.com; @b_parkyn)
CASH MARKETS
Zumbrota, Minn Hog $3.00 Higher at $53.00 - Jun 18
Barrow and gilt prices at the Zumbrota, Minn., livestock market are
$3.00 higher at $53.00 per hundredweight.
Sow prices are $2.00 higher. Sows weighing 400-450 pounds are at $34.00-$36.00,
450-500 pounds are $34.00-$36.00 and those over 500 pounds are at $38.00-$40.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Jun 18
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Jun 18 -$ 4.26 +$ 49.23
Jun 15 -$ 6.17 +$ 48.76
Jun 14 -$10.06 +$ 44.41
* 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 88.5
(Percent of Year-Ago) Select 92.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell 88 cents per
hundred pounds, to $220.71, according to the USDA. Select-grade
prices rose $1.47 per hundred pounds, to $204.20. The total load
count was 110. Wholesale pork prices rose 22 cents, to $83.30 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 18, 2018 17:36 ET (21:36 GMT)
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