LIVESTOCK HIGHLIGHTS: Top Stories of the Day
November 19 2018 - 5:40PM
Dow Jones News
TOP STORIES
Kroger-Ocado Deal Breaks Ground in Cincinnati -- Market Talk
14:01 ET - Kroger says it is building its first automated online
grocery warehouse in its home Cincinnati market. The first of 20
planned sites with UK online grocer Ocado Group PLC will be
335,000-square-feet and located in a suburb north of Kroger's
headquarters. The $55M warehouse is expected to employ 410. Kroger
received Ohio tax credits as part of the deal. Kroger is seeking to
take on Amazon and Walmart as competition in online grocery grows.
(heather.haddon@wsj.com; @heatherhaddon
STORIES OF INTEREST
U.K. Supermarkets Confident Brexit Won't Mean Food Rationing --
Market Talk
1048 GMT - U.K. supermarkets are confident the British
government will step in to avoid food shortages in the case of a
no-deal Brexit. Analysts at Berenberg note the U.K. would run out
of fresh food in seven days if its border was completely closed to
European imports, potentially leading to food rationing. However,
they say this is a key reason for optimism in the industry, as food
and medicine supplies are likely to be prioritized in the case of a
no-deal Brexit. "There is a high likelihood of last minute backstop
mechanisms to circumvent near-term disruptions in supply. Overall,
this is a tail risk to which we would assign low probability,"
Berenberg says. (adam.clark@dowjones.com)
Pence Comments On China Weigh On Soybean Prices
Soybean prices fell as optimism for a U.S.-China trade agreement
faltered, after U.S. Vice President Mike Pence criticized China
during his trip to the Indo-Pacific region that ended this
weekend.
"At this point I would paint Vice President Pence as the 'bad
cop,' while Trump seems to be trying to play the 'good cop,'" said
Charlie Sernatinger of ED&F Man Capital Markets.
FUTURES MARKETS
Livestock Futures End Higher -- Market Talk
16:03 ET - CME hog futures rise 1.6% to 61.025 cents a pound,
while live cattle futures rise 0.7%. African swine fever continues
to spread in China, as analysts say the disease spread to two new
provinces over the weekend. Meanwhile, this week's hog slaughter
will be interrupted by Thanksgiving on Thursday. "Typically we
should see a very large Saturday kill effort to make up for
Thursday's closure," says Dennis Smith of Archer Financial
Services. (francesca.fontana@wsj.com; @francescamarief)
CASH MARKETS
Zumbrota, Minn Hog Steady at $33.00 - Nov 19
Barrow and gilt prices at the Zumbrota, Minn., livestock market are
steady at $33.00 per hundredweight.
Sow prices are steady to $1.00 lower. 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-$39.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Nov 19
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Nov 19 +$ 26.92 +$ 11.81
Nov 16 +$ 28.34 +$ 10.99
Nov 15 +$ 30.14 +$ 12.09
* 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 103.5
(Percent of Year-Ago) Select 105.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose 48 cents per
hundred pounds, to $213.39, according to the USDA. Select-grade
prices rose $1.00 per hundred pounds, to $198.57. The total load
count was 120. Wholesale pork prices rose 38 cents, to $67.23 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
November 19, 2018 17:25 ET (22:25 GMT)
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