TOP STORIES

Feedyards, Ranchers Expanding U.S. Herds

Herds of cattle in the U.S. continue to grow.

The U.S. Department of Agriculture said on Friday that the number of cattle and calves totaled 103 million head as of July 1, up 1% from the same time a year earlier. The calf crop, an indication of producers' longer-term intentions, is expected to rise 2% in 2018 from a year earlier.

In a separate report, the agency said that feedyards operators placed 1% more cattle in their lots for fattening in June than a year earlier. That helped bring the total number of cattle on-feed as of July 1 to 11.3 million head, up 4% from a year earlier and in line with expectations.

Beef Cow Replacement Inventory Falls Slightly as Liquidation Begins -- Market Talk

16:10 ET - Total supplies of cows due to replace beef heifers are down 2% from a year ago per USDA data, indicating to some analysts that a liquidation phase may be starting in the cattle industry. "The expansion phase has come to a close, and I don't think it's a big shock," said Don Roose of US Commodities. Total national supplies of cattle and calves as of July 1 totaled 103M head, up 1% from 102M head a year before. The calf crop in 2018 is expected to be 36.5M head, up 2% from the crop a year ago. (francesca.fontana@wsj.com; @francescamarief)

STORIES OF INTEREST

Cattle Herd Growth Slowing, USDA Data Shows -- Market Talk

16:26 ET - The number of cattle placed into feedlots for fattening in June was largely in line with expectations. The USDA says feedyard operators put 1% more cattle in their lots than the same time a year earlier. Cattle on-feed totaled 11.3M head as of July 1, 4% above a year earlier, the highest July 1 inventory since 1996. Heifers and heifer calves on-feed were up 8% to 4.15M head, suggesting to analysts that the expansion period is coming to an end as more heifers are being fattened for slaughter than used for breeding. Cattle marketed, or sent to slaughterhouses, rose 1% from a year earlier. All figures were in line with prereport estimates. (francesca.fontana@wsj.com; @francescamarief)

Grain, Soybeans Rise as Traders Shrug Off Trump Threat

Wheat futures rose to the highest point in over month on Friday, ending a standout week for grain and soybean markets.

September-dated contracts rose 2.3% to $5.16 a bushel at the Chicago Board of Trade, closing at the highest point since June 13.

CBOT September corn futures rose 1.1% to $3.55 1/4 a bushel, and August soybean contracts rose 0.4% to $8.49 3/4 a bushel. Prices for both crops have risen every day this week, rebounding after falling sharply in June and early July.

FUTURES MARKETS

Cattle Producers Eye End to Expansion

Cattle producers are slowing herd growth after a bout of expansion, government data show.

The U.S. Department of Agriculture said on Friday that the number of cattle and calves totaled 103 million head as of July 1, up 1% from the same time a year earlier. The calf crop, an indication of producers' longer-term intentions, is expected to rise 2% in 2018 from a year earlier.

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Jul 20 
 
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 
                                      * 
Jul 20       +$ 23.11            +$ 42.80 
Jul 19       +$ 21.48            +$ 45.92 
Jul 18       +$ 17.09            +$ 44.91 
 
* 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   98.7 
      (Percent of Year-Ago)     Select  101.1 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Friday fell 32 cents per hundred pounds, to $204.17, according to the USDA. Select-grade prices rose 8 cents per hundred pounds, to $197.00. The total load count was 98. Wholesale pork prices fell $1.45, to $80.31 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

July 20, 2018 17:52 ET (21:52 GMT)

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