LIVESTOCK HIGHLIGHTS: Top Stories of the Day
June 20 2018 - 06:02PM
Dow Jones News
TOP STORIES
Canada Defends Retaliatory Tariffs Against U.S. -- Market
Talk
15:47 ET - At a Montreal press conference, Canadian Foreign
Minister Chrystia Freeland was pressed to defend Ottawa's decision
to retaliate with C$16.6B in tariffs on U.S. goods in response to
levies on Canadian-made steel and aluminum. "There's always a
choice," she said, "but based on our absolute commitment to
defending the national interest, a rules-based international order
and standing up for Canadian values, in this instance there was no
other option." President Trump has warned allies it would be a
"mistake" to retaliate. Freeland noted Canada didn't retaliate
against U.S. tariffs on Canadian softwood lumber, because in that
circumstance the U.S. followed a familiar Commerce Department
process. The metals tariffs, though, were imposed on
national-security grounds, and "that is simply illegal."
(paul.vieira@wsj.com; @paulvieira)
STORIES OF INTEREST
Grain, Soybeans Resilient After Trade Rout
Prices for soybeans and corn steadied Wednesday after concerns
about U.S.-China agricultural trade sparked a selloff earlier this
week.
Corn futures for July delivery rose 0.1% to $3.54 1/4 a bushel
at the Chicago Board of Trade, climbing from a four-month low.
July-dated soybeans also rose 0.1% to $8.89 1/2 a bushel, after
previously trading at a two-year low.
China Plays for Time on U.S. Soybean Trade -- Market Talk
10:05 ET - Tariffs or no tariffs, many farm-sector followers
believe the time will come when China will have to import
U.S.-grown soybeans, due to the sheer number of hogs, chickens and
other meat animals China raises -- South American producers can't
meet China's full demand. But ongoing tension between China and the
U.S. could play to Chinese soybean buyers' advantage: So far this
month, November-delivery soybean futures prices have dropped more
than 10%. "We believe the Chinese government is betting that the
trade dispute will be resolved before it becomes desperate for U.S.
product and, in the meantime, the dispute will have helped drive
soybean prices much lower," Vertical Group analysts write.
(jacob.bunge@wsj.com; @jacobbunge)
Canada Ready to Make Nafta Negotiations Work -- Market Talk
13:47 ET - In prepared remarks and a Q&A session in
Montreal, Canadian Foreign Minister Chrystia Freeland reiterates
U.S. tariffs on Canadian-made steel and aluminum products on
national-security grounds are "absurd" and "hurtful." The metals
tariffs are "protectionism, pure and simple," she says. Canada has
no choice but to retaliate with C$16B in tariffs against certain
U.S. products, she tells the Montreal luncheon crowd. Still,
Freeland says Canada is prepared to try to find common ground in
the Nafta talks, adding she had a constructive talk last week with
U.S. Trade Representative Robert Lighthizer. Earlier Wednesday,
Commerce Secretary Wilbur Ross said a successful negotiation of
Nafta could lead to repeal of the metals tariffs.
(paul.vieira@wsj.com; @paulvieira)
FUTURES MARKETS
Cattle Prices Rise on Tightening Supplies
Cattle futures rose as traders bet strong demand from
meatpackers would help boost prices.
June-dated contracts rose 0.5%, to $1.0925 a pound, at the
Chicago Mercantile Exchange on Wednesday, the second consecutive
day of gains. The cattle market was among the few commodities to
withstand a selloff this week sparked by trade concerns between the
U.S. and China.
CASH MARKETS
Zumbrota, Minn Hog $3.00 Higher at $56.00 - Jun 20
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are $3.00 higher at $56.00 per hundredweight. Sow prices are $2.00
higher. Sows weighing 400-450 pounds are at $36.00-$38.00, 450-500
pounds are $36.00-$38.00 and those over 500 pounds are at
$40.00-$42.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Jun 20
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Jun 20 -$ 1.87 +$ 50.69
Jun 19 -$ 4.41 +$ 50.30
Jun 18 -$ 4.26 +$ 49.23
* 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 88.9
(Percent of Year-Ago) Select 91.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.41 per
hundred pounds to $218.29, according to the USDA. Select-grade
prices fell $1.25 per hundred pounds to $201.02. The total load
count was 165. Wholesale pork prices rose 18 cents to $83.98 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 20, 2018 17:47 ET (21:47 GMT)
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