LIVESTOCK HIGHLIGHTS: Top Stories of the Day

Date : 07/12/2018 @ 5:54PM
Source : Dow Jones News

LIVESTOCK HIGHLIGHTS: Top Stories of the Day

TOP STORIES

 

Beef Sales Boost Profits for Cargill -- Market Talk

09:39 ET - Growing domestic and export demand for North American beef helped agricultural conglomerate Cargill more than double quarterly earnings to $711M, the company reports, as revenues climbed 7% to $30.4B for the period. Cargill says its protein business delivered "an exceptional performance," driven by beef, where Cargill's been investing in processing plants while exiting its feedyard business, aiming to reduce its exposure to the more volatile aspects of the cattle industry. The beef surge was helped by rising demand for Cargill's egg products, and helped offset rising chicken supplies in Thailand, which pressured Cargill's business there. (jacob.bunge@wsj.com; @jacobbunge)

 

Ag Export Sales Lag Behind Expectations -- Market Talk

09:16 ET - Sales of grain, soybeans and red meat mostly lagged expectations in the most recent week. The USDA says exporters sold 136,400 metric tons of wheat in the week ended July 5, well below the range of pre-report estimates. The sales were "dismal," says Terry Reilly of Futures International. Corn sales also fell short, while soybeans were at the low end of estimates. China last week introduced tariffs on a range of U.S. agricultural goods, which is expected to weigh on exports -- particularly for soybeans. Meat exports also suffered. Sales of pork, which both China and Mexico targeted with tariffs, fell 43% from the prior four-week average. Beef sales fell 8% from the same period. (benjamin.parkin@wsj.com; @b_parkyn)

 

STORIES OF INTEREST

 

Hog Farmers Blast Cell-Culture Meat -- Market Talk

11:08 ET - Pork producers call on the U.S. Department of Agriculture to hold developers of cell culture meat, an emerging technology producing meat from animal cells in bioreactor tanks, to the same regulatory standards and inspection as conventionally raised sausage and hamburger. The National Pork Producers Council accuses cell-culture meat developers of shrouding their processes in secrecy while making "unsubstantiated claims" about the sustainability and safety of their products, versus traditional meat. The group worries that the FDA--which is hosting a public informational hearing on the technology Thursday -- will let cellular agriculture avoid "rigorous inspection." Cell-culture meat developers have seen the FDA as friendlier to new food technologies. (jacob.bunge@wsj.com; @jacobbunge)

 

China to Cut Soybeans Imports Amid Trade Dispute -- Market Talk

13:08 ET - Tariffs could leave Chinese pigs hungry. The USDA says that China is due to cut soybean imports by 8% to 95 million metric tons, as newly introduced duties on U.S. oilseed makes the key animal-feed source more expensive. That could push pig farmers and others to seek out alternative sources of protein, while sticking global soybean farmers with a larger surplus. The agency increased its world soybean stockpile forecast for 2018-19 by 13% to 98.3 million tons, well above pre-report expectations. (benjamin.parkin@wsj.com; @b_parkyn)

 

FUTURES MARKETS

 

Cattle, Hog Futures Rise; Producers Ramp Up Output -- Market Talk

15:51 ET - Livestock futures rise, steadying after a week of mostly lower closes. In a monthly supply-and-demand report, the USDA forecast higher production of red meat and poultry in 2018 and 2019. Concern about oversupply has recently pressured those markets, as traders brace for larger herds. Recent data showed that hog farmers intend to raise more pigs in the months to come, for example. But the agency raised its beef export forecast, a sign of strong demand, and left pork trade unchanged despite new Chinese and Mexican tariffs on U.S. imports. CME July lean hog futures rose 0.2% to 79.95 cents a pound. August live cattle contracts climbed 1.1% to $1.05025 a pound. (benjamin.parkin@wsj.com; @b_parkyn)

 

CASH MARKETS

 
Zumbrota, Minn Hog Steady at $51.00 - Jul 12 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market are steady at $51.00 per hundredweight.

Sow prices are steady. Sows weighing 400-450 pounds are at $36.00-$37.00, 450-500 pounds are $36.00-$37.00 and those over 500 pounds are at $38.00-$40.00.

The day's total run is estimated at 150 head.

Prices are provided by the Central Livestock Association.

 
Estimated U.S. Pork Packer Margin Index - Jul 12 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Jul 12       +$ 13.16             +$46.28 
Jul 11       +$  9.44             +$48.00 
Jul 10       +$  7.85             +$47.74 
 
* 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   99.9 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Thursday fell 86 cents per hundred pounds to $206.58, according to the USDA. Select-grade prices fell 13 cents per hundred pounds to $197.01. The total load count was 126. Wholesale pork prices fell 80 cents to $81.93 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

July 12, 2018 17:39 ET (21:39 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.


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