TOP STORIES

Salmonella Thrived at NC Farm Linked to Spring Outbreak -- Market Talk

11:40 ET - A warning letter from the FDA to the North Carolina farm at the center of a multistate salmonella outbreak last spring details findings of the same bacteria strain found in its processing plant and a poultry house. According to the letter, the outbreak strain of salmonella was found in eight samples from the farm, from water pooled on the floor to dried water beneath a broken egg cart. The farm's owner, Rose Acre Farms, recalled nearly 207M eggs in April after its eggs were discovered to be the likely source of the outbreak that ultimately sickened 45 people in 10 states. FDA says the farm had submitted a "restoration plan" and was taking steps to improve its operations. Last week, the CDC announced a second salmonella outbreak tied to eggs this year. (jesse.newman@wsj.com; @jessenewman13)

STORIES OF INTEREST

McDonald's Avoids Fines as Europe Rules Its Tax Deal Is Legal--Update

BRUSSELS -- European Union regulators said Wednesday that McDonald's Corp.'s tax arrangement in Luxembourg is legal, dropping an investigation against the U.S. fast-food giant while lauding efforts to close tax loopholes in the probe's wake.

The closure contrasts with a slew of fines and tax bills slapped on other American companies, particularly tech giants. President Trump and his predecessor, Barack Obama, have accused the EU of unfairly punishing U.S. firms with antitrust and tax cases.

Grain Futures Finish Higher as Harvest Continues

Corn and soybean futures finished higher Wednesday, recovering from yesterday's losses as harvest season and trade tariff escalation continue.

Soybean contracts for November rose 2% to $8.30. Corn contracts for December delivery rose 0.7%, and December wheat contracts rose 2.4%. Corn and soybean producers are now focusing on harvesting their crops, which typically puts pressure on prices as supplies increase, experts say.

FUTURES MARKETS

Hog, Cattle Futures Edge Lower -- Market Talk

15:39 ET - Livestock futures end slightly lower as production delays due to tropical storm Florence near an end. Hog futures fall 0.1% to 57.9 cents a pound, and cattle futures fall 0.1%. Experts estimate that around 5,000 pigs were killed due to the tropical storm. Meat processor Smithfield Foods says in a statement, "Of our more-than 200 company-owned farms in North Carolina, we know of just one farm where flood waters have inundated the hog houses and lagoon." Smithfield adds that company facilities are running at limited capacity. (francesca.fontana@wsj.com; @francescamarief)

CASH MARKETS

 
Zumbrota, Minn Hog Steady at $34.00 - Sep 19

Barrow and gilt prices at the Zumbrota, Minn., livestock market are steady at $34.00 per hundredweight. Sow prices are steady. Sows weighing 400-450 pounds are at $21.00-$23.00, 450-500 pounds are $21.00-$23.00 and those over 500 pounds are at $24.00-$26.00.

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 - Sep 19 
 
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 
                                      * 
Sep 19       +$ 36.38            +$ 32.02 
Sep 18       +$ 42.94            +$ 31.14 
Sep 17       +$ 44.31            +$ 27.85 
 
* 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  106.4 
      (Percent of Year-Ago)     Select  103.0 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday fell $1.04 per hundred pounds, to $204.25, according to the USDA. Select-grade prices fell $1.29 per hundred pounds, to $194.18. The total load count was 173. Wholesale pork prices rose 41 cents, to $76.63 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

September 19, 2018 17:22 ET (21:22 GMT)

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