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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