LIVESTOCK HIGHLIGHTS: Top Stories of the Day
December 10 2018 - 5:45PM
Dow Jones News
TOP STORIES
December Cattle Slaughter Highest Since 2010 -- Market Talk
11:18 ET - Cattle-slaughter statistics for the week ended
Saturday show it was the highest December cattle-slaughter week
since 2010, as well as the second-highest slaughter week this year.
Total cattle slaughter for the week was estimated at 667,000 heads,
4.3% higher than the same time last year. According to Dennis Smith
of Archer Financial, beef prices remain steady despite the higher
slaughter figure, indicating better-than-expected demand. "The kill
was huge, the second largest of the entire year, yet most beef cuts
are being offered at steady money today," Smith says.
(kirk.maltais@wsj.com; @kirkmaltais)
Grain Futures Fall as Market Looks for Clarity in Crop Reports
Wheat contracts for March delivery fell 1.1% to $5.25 1/4 a
bushel at the Chicago Board of Trade Friday. January soybean
contracts also fell 0.8% to $9.09 3/4 a bushel. The spread of
African swine fever among pigs in Asia and abroad could prove to be
a factor moving soybean demand estimates in Tuesday's WASDE
reports.
STORIES OF INTEREST
Wall Street Is Underestimating Labor-Cost Pressures -- Market Talk
12:07 ET - Research firm Gordon Haskett thinks estimates for
labor costs at about two-thirds of the largest restaurant companies
are "extremely aggressive." Wall Street projects labor costs will
be 32.2% of sales next year, up from a projected 32% this year,
according to the company. But an increase of that amount is
unlikely, "given the accelerating wage rate inflation levels that
virtually every company in the restaurant sector is facing," the
firm says. State-level minimum-wage hikes, low unemployment rates
and fact that most companies have already implemented cost-savings
initiatives will pressure costs, Gordon Haskett says. The companies
most exposed to higher wages are Habit Restaurants, Del Taco, BJ's,
Red Robin and Noodles & Co, it adds. (micah.maidenberg@wsj.com,
@MicahMaidenberg)
FUTURES MARKETS
Livestock Futures End Lower -- Market Talk
15:12 ET - Hog futures approach seasonal lows as CME lean hog
contracts for February delivery fall 1.6%, while live cattle
contracts end 0.3% lower. "In 2019, we will have record large
supplies (of pork)," says Don Roose, president of US Commodities.
"So the market desperately needs an increase in exports ... whether
that's from China or through a third party or from a new location."
Meanwhile, African swine fever continues to spread in China, which
some analysts think will lead to increased foreign demand coming to
US producers. (francesca.fontana@wsj.com; @francescamarief)
Grain Futures Fall as Market Looks for Clarity in Crop Reports
Wheat contracts for March delivery fell 1.1% to $5.25 1/4 a
bushel at the Chicago Board of Trade Friday. January soybean
contracts fell 0.8% to $9.09 3/4 a bushel. The spread of African
swine fever among pigs in Asia and abroad could prove to be a
factor moving soybean demand estimates in Tuesday's WASDE
reports.
CASH MARKETS
Zumbrota, Minn, Hog Market Not Established - Dec 10
Barrow and gilt prices at the Zumbrota, Minn., livestock market are
not established. Thursday, December 6, Barrow and gilt prices were
$33.00 per hundredweight.
Sow prices are $1.00-$3.00 higher. Sows weighing 400-450 pounds are
at $29.00-$30.00, 450-500 pounds are $29.00-$30.00 and those over 500
pounds are at $32.00-$33.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Dec 10
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Dec 10 +$ 48.03 +$ 20.30
Dec 07 +$ 47.73 +$ 21.79
Dec 06 +$ 44.68 +$ 18.48
* 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 104.8
(Percent of Year-Ago) Select 108.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $1.13 per hundred
pounds, to $215.42, according to the USDA. Select-grade prices rose
44 cents per hundred pounds, to $200.94. The total load count was
105. Wholesale pork prices fell 69 cents, to $71.18 a hundred
pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
December 10, 2018 17:30 ET (22:30 GMT)
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