TOP STORIES

USDA, CDC Probe Salmonella Outbreak in Turkey -- Market Talk

15:21 ET - Months after a deadly E.coli outbreak rattled the US lettuce industry, the US Department of Agriculture and Centers for Disease Control are investigating a salmonella outbreak associated with raw turkey products, including meat and pet food. Ninety cases have been reported across 26 states so far, with 40 hospitalizations and no deaths, according to the CDC. Since the salmonella strain is present in live turkeys and in "many types" of raw turkey products, CDC officials say "it might be widespread in the turkey industry." For now, CDC officials are not advising consumers steer clear of buying or eating turkey, as long as it's handled carefully and cooked thoroughly. (jacob.bunge@wsj.com; @jacobbunge)

Despite Trump Talk, Canada Envisages Trilateral Nafta Deal -- Market Talk

10:31 ET - At a gathering of Canada's provincial premiers in New Brunswick, Canada's chief envoy in Washington, David MacNaughton, tells reporters he's "fully confident" that Nafta--if successfully renegotiated--will remain a trilateral deal. President Trump said Wednesday he was keen to strike a separate trade deal first with Mexico, and then negotiate with Canada at a later date. MacNaughton says Trump's comment "wasn't a tremendous surprise" given the president's preference for bilateral pacts. He says negotiators with the US, Mexico and Canada have made significant progress on auto issues, and once those are resolved the countries can move onto other outstanding issues. Mexico's economy minister said Wednesday Washington and Mexico City are keen to wrap up Nafta talks by the end of August. (paul.vieira@wsj.com; @paulvieira)

STORIES OF INTEREST

In China, Iowa Farmers Try Their Hand at Trade Diplomacy

CHANGCHUN, China -- As U.S. farmers found themselves this month at ground zero in the trade fight between Washington and Beijing, a group of Iowans barnstormed through China farm country, hoping to salvage relations with buyers who are already turning their backs on America's harvest.

Tariffs imposed by Beijing on soybeans and corn have made those U.S. commodities more costly here. Chinese importers have been buying more outside the U.S. and looking into growing more in China.

UBS Cautious On Household, Personal Care Products -- Market Talk

14:02 ET - UBS is taking a cautious stance on the US household and personal care industry, initiating coverage of the sector with mostly neutral ratings. Analysts say that while the US household and personal care industry has better potential for long-term growth than US food, this upside is already priced in. UBS also says Procter and Gamble "is back on offense," and stands to disrupt profit pools of companies that lack scale. UBS has a buy ratings on Colgate-Palmolive, sell ratings on Kimberly-Clark and Clorox, and is neutral on Energizer, Edgewell, Procter & Gamble, Estee Lauder and Church & Dwight. (francesca.fontana@wsj.com; @francescamarief)

In China, Iowa Farmers Try Their Hand at Trade Diplomacy

CHANGCHUN, China -- As U.S. farmers found themselves this month at ground zero in the trade fight between Washington and Beijing, a group of Iowans barnstormed through China farm country, hoping to salvage relations with buyers who are already turning their backs on America's harvest.

Tariffs imposed by Beijing on soybeans and corn have made those U.S. commodities more costly here. Chinese importers have been buying more outside the U.S. and looking into growing more in China.

For the first half, Unilever reported underlying sales growth of 2.5%, driven almost entirely by volume, rather than price. The company had in June warned first-half growth would be below its full-year target of 3% to 5% because of a trucker's strike in Brazil, which hurt sales growth by 0.6 percentage point.

FUTURES MARKETS

Cattle, Hog Futures Drift

Livestock futures closed little changed on Thursday.

Lean hog contracts for August delivery rose 0.1% to 67.25 cents a pound at the Chicago Mercantile Exchange.

CME August live cattle contracts closed 0.1% lower at $1.089 a pound. Traders were looking ahead to cattle supply data due from the USDA on Friday.

CASH MARKETS

 
Zumbrota, Minn Hog Steady at $47.00 - Jul 19 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market are steady at $47.00 per hundredweight.

Sow prices are steady. Sows weighing 400-450 pounds are at $35.00-$36.00, 450-500 pounds are $35.00-$36.00 and those over 500 pounds are at $37.00-$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 - Jul 19 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Jul 19       +$ 21.48            +$ 45.92 
Jul 18       +$ 17.09            +$ 44.91 
Jul 17       +$ 18.98            +$ 49.10 
 
* 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   98.5 
      (Percent of Year-Ago)     Select  100.7 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Thursday rose 31 cents per hundred pounds, to $204.49, according to the USDA. Select-grade prices fell 17 cents per hundred pounds, to $196.92. The total load count was 166. Wholesale pork prices rose 47 cents, to $81.76 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

July 19, 2018 17:40 ET (21:40 GMT)

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