LIVESTOCK HIGHLIGHTS: Top Stories of the Day
May 21 2019 - 5:59PM
Dow Jones News
TOP STORIES
Smithfield Says It's Made Great Strides in Sustainability --
Market Talk
14:07 ET - Smithfield Foods, which is owned by WH Group, says
it's made great strides in sustainability in areas like animal
welfare, supply chain and employee safety. Smithfield's 2018
sustainability report discusses achievements including maintaining
group housing for all pregnant sows on company-owned farms.
Smithfield set a goal to reduce solid waste to landfill by 75% and
achieve zero-waste-to-landfill certification at 75% of its US
facilities by 2025. Its efforts have included work with the
Environmental Defense Fund, such as a collaboration started in 2014
to reduce fertilizer runoff. In October, Smithfield expanded a
"manure-to-energy" plan that involves covering lagoons to capture
biogas. (josh.beckerman@wsj.com)
STORIES OF INTEREST
Kroger Joins Reusable Product Pilot -- Market Talk
11:56 ET - Kroger becomes one of the first large US grocers to
offer a reusable consumer products service that Nestle, Unilever,
P&G and other major brands have begun to back as consumer
become more worried about plastics. Brands that participate in the
Loop system allow consumers to ship back their empty product
containers and have them refilled. Kroger is starting the service
online in New York, New Jersey, Pennsylvania, Maryland and
Washington, D.C., but hopes to eventually roll it out to stores.
(heather.haddon@wsj.com; @heatherhaddon)
Grain Supplies Likely Hit If Farmers Turn to Payouts
American farmers, hampered by cold, wet weather across the
Midwest and grappling with the fallout of the U.S.-China trade
standoff, are looking at taking insurance payouts instead of
planting their crops -- which may take a large bite out of next
year's U.S. agricultural supplies.
Many farmers take out crop insurance each year that includes a
prevent-planting clause, which promises modest payouts if the seeds
can't be sown. While these payments don't fully replace the income
farmers would receive from selling their crops, they do provide
farmers with an incentive not to plant muddy fields with soybeans
and grains that might garner low prices at harvest time.
McDonald's Workers Raise Sexual Harassment Charges -- Market
Talk
08:24 ET - More McDonald's workers are accusing the company of
failing to respond to sexual harassment incidents in its locations,
and filing suit or US Equal Employment Opportunity Commission
complaints, according to unions. Organizations such as the Fight
for $15 first levied charges three years ago, with 25 more workers
now making claims. Sexual harassment in restaurants has been more
of a focus since the Me Too movement. McDonald's says its
implemented anti-harassment measures. (heather.haddon@wsj.com;
@heatherhaddon)
For Cranswick, China Pig Woes Bring Fortune: Peel Hunt -- Market
Talk
1306 GMT - U.K. food-producer Cranswick stands to benefit from
the havoc wrought on Chinese pig herds by African swine flu, Peel
Hunt says. The brokerage estimates that the virus has reduced pig
numbers in China by more than 30%, and this has led to a 40%
increase in pig prices, which are set to raise by a further
50%-100% in 2H. Peel Hunt says that Cranswick's bottom line will
benefit from higher Chinese prices, though this will be partially
offset by the need to recover price increases in the U.K. and
Europe. (carlo.martuscelli@dowjones.com)
FUTURES MARKETS
Allendale Forecasts Record Cattle-on-Feed Figures -- Market
Talk
15:26 ET - Allendale is forecasting a record total of cattle on
feed to be indicated in Friday's USDA report-totaling 11.886M head
as of May 1, according to the firm. Allendale says this would be
2.8% higher than the same time last year--and would be the highest
May 1 figure since the report started in 1996. Placements,
meanwhile, are expected at 1.914M head through April, up 12.9% from
last year and also the highest since 1996. The higher supply
explains the downward trend for cattle, which falls 0.5% to
$1.10850 per pound on the CME today. The contract has now fallen
for 18 out of the last 22 sessions, dropping by 9.5% since April
22. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - May 21
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
May 21 +$ 2.43 +$ 54.60
May 20 +$ 1.85 +$ 53.16
May 17 -$ 3.01 +$ 50.54
* 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 95.1
(Percent of Year-Ago) Select 99.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $1.87 per
hundred pounds, to $219.58, according to the USDA. Select-grade
prices fell $1.45 per hundred pounds, to $206.58. The total load
count was 138. Wholesale pork prices rose 67 cents, to $85.80 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 21, 2019 17:44 ET (21:44 GMT)
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