TOP STORIES

 
US Pork Industry Sets Defenses Against Swine Fever -- Market Talk

12:25 ET - US pork producers have been closely watching the spread of African swine fever in China, and shoring up domestic defenses in the event the malady jumps the Pacific. "We in the industry have been working closely with the US government to make sure it doesn't come to North America," says Tyson Foods CEO Noel White, including measures to limit ASF's spread if it does arrive. Some analysts regard China's struggle with the disease as a signal that China may have to boost US pork imports, which have suffered due to tariffs on US meat, but so far there's been no significant impact, White says. (jacob.bunge@wsj.com; @jacobbunge)

STORIES OF INTEREST

 
Tyson Trims Sales Forecast on Lower Meat Prices

Tyson Foods Inc. expects meat prices to face continued pressure over the next year, as the U.S. protein industry grapples with rising supplies and trade disputes, executives said. Lower meat prices led the Arkansas-based company to reduce its 2019 sales forecast by $1 billion to $41 billion. The company expects a continued boom in beef profits to offset challenges facing its poultry and pork divisions, keeping its profit steady in fiscal 2019.

 
World Hunger for Meat Drawing Tyson to Intl Investment -- Market Talk

09:54 ET - Tyson Foods' new CEO Noel White is keen to rebuild the US meat giant's international business, after several years ago divesting Latin American chicken operations and resetting its approach to China. Despite past struggles, Tyson needs to be overseas because that's where people are eating more chicken, beef and pork, White says. "We're forecasting about 90% of the growth in global protein demand will take place outside the US," he tells analysts on Tyson's quarterly earnings call. "We do plan to participate in that demand growth as we see economies grow and develop." (jacob.bunge@wsj.com; @jacobbunge)

 
Tyson: Meat-Market Pressures Continuing in 2019 -- Market Talk

08:50 ET - Record-high US production of chicken and pork has weighed down meat prices this year, and top US meat processor Tyson Foods sees challenging conditions continuing into the Arkansas company's fiscal 2019. Tyson projects adjusted operating margins for its core chicken division declining to "near 8%," which would be an improvement on 2018's 7.2%, but down from 2017. Tyson's pork division margins are expected to fall to about 6%, while beef will decline slightly to 6% and prepared foods will rise by one percentage point to 11%. Meat companies have been building and expanding pork and chicken plants, while tariffs from meat-importing countries like Mexico and China have pressured prices. Shares fall 4.6% premarket. (jacob.bunge@wsj.com; @jacobbunge)

FUTURES MARKETS

 
Livestock Futures End Higher -- Market Talk

15:40 ET - CME hog futures gain 1.3% to 57.3000 cents a pound, while cash prices are called lower, analysts say. "Packers are well-supplied with butchers for the week--and next week, of course, is a short kill week (due to the Thanksgiving holiday)," says Dennis Smith of Archer Financial Services. "Packer margins, however, are very profitable. They have no incentive to slow the kill." Meanwhile, cattle futures gain 0.4%. (francesca.fontana@wsj.com; @francescamarief)

CASH MARKETS

 
Zumbrota, Minn Hog Steady at $34.00 - Nov 13

Barrow and gilt prices at the Zumbrota, Minn., livestock market are $1.00 lower at $34.00 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 $38.00-$40.00.

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 - Nov 13 
 
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 
                                      * 
Nov 13       +$ 35.37            +$ 15.83 
Nov 12       +$ 31.80            +$ 16.18 
Nov  9       +$ 28.62            +$ 14.97 
 
* 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  101.6 
      (Percent of Year-Ago)     Select  102.8 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Tuesday fell $1.47 per hundred pounds, to $214.08, according to the USDA. Select-grade prices fell $1.41 per hundred pounds, to $198.98. The total load count was 118. Wholesale pork prices fell 16 cents, to $69.10 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

November 13, 2018 17:26 ET (22:26 GMT)

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