TOP STORIES

No New Pork Sales to China in USDA Export Report -- Market Talk

08:49 ET - No new pork sales to China were reported by the USDA in its export sales report Thursday, this despite indications China had begun to make "good will" purchases of US soybeans ahead of a high level meeting in Washington in October. Traders were hopeful that Chinese buyers would also buy US pork as a sign of good will. Last week, the Chinese Ministry of Commerce reported that the wholesale price of pork in China had risen to 35.11 yuan ($4.95) per kilogram--or $2.24 per pound, nearly four times the price of US pork. Had a new purchase by China been reported, then hog futures were expected to rally Thursday. (kirk.maltais@wsj.com; @kirkmaltais)

South Korea's Pork Imports From U.S. May Surge on Disease Outbreak -- Market Talk

0936 GMT - An outbreak of African Swine Fever in South Korea may come as a boon for U.S. pork farmers as lower local supply may spur demand for imports. South Korea was the fifth-biggest importer of American pork in 2018 at $670 million in purchases, according to data from the U.S. Meat Export Federation. The outbreak of the disease has prompted officials to plan the possible culling of thousands of local pigs, which may crimp local supplies. Wholesale prices of pork have been surging since the Swine fever was reported, just north of the capital Seoul this week. (nayoung.kim@wsj.com; @Nayoung74470338)

Olive Garden Boosts Darden Restaurants Results

Darden Restaurants Inc. said sales rose in its latest quarter as stronger results from its flagship Olive Garden and LongHorn Steakhouse brands offset declines from its smaller chains.

The Orlando-based restaurant operator said on Thursday that total first-quarter sales grew 3.5% from a year earlier to $2.13 billion, slightly below what Wall Street analysts were expecting, according to FactSet.

Overall, the restaurant chain reported a profit of $170.6 million, or $1.37 a share, compared with $166.2 million, or $1.32 a share, a year ago. Analysts polled by FactSet were expecting earnings of $1.36 a share.

STORIES OF INTEREST

Chinese Delegation to Visit US Farms, Perdue Confirms -- Market Talk

14:09 ET - The Chinese delegation in Washington meeting this week to discuss trade will be visiting US farms next week, US Agricultural Secretary Sonny Perdue confirmed during a press conference Thursday. The Chinese delegation wishes to observe US farm operations, and the USDA hopes that this will help when the two sides negotiate a deal in October. Perdue was unable confirm further details about the visit, deferring to USTR Robert Lighthizer and Treasury Secretary Steve Mnuchin. Corn futures on the CBOT are up 0.1%, soybeans are up 0.4%, and wheat is down 0.7%. (kirk.maltais@wsj.com; @kirkmaltais)

Glencore Joins Efforts to Modernize Agribusiness Shipping -- Market Talk

12:12 ET - Glencore's agriculture unit has joined a group of the biggest agribusiness companies in their efforts to modernize global shipping transactions. In a bid to drive down costs and boost efficiency. Archer Daniels, Bunge, Cargill and Louis Dreyfus last October said they would use emerging digital technologies such as blockchain and artificial-intelligence to automate grain and oilseed transactions. China's Cofco got on board in December. The group says it expects to launch the new platform in the second half of next year. (colin.kellaher@wsj.com)

Beyond Meat Names Sanjay Shah Operating Chief

Beyond Meat Inc. (BYND) has hired former Amazon.com Inc. (AMZN) and Tesla Inc. (TSLA) executive Sanjay Shah as chief operating officer.

Effective Wednesday, Mr. Shah assumed responsibility for global operations and production.

FUTURES MARKETS

Hogs Finish Slightly Higher, Cattle Down -- Market Talk

15:23 ET - After a back-and-forth day, December hog futures finish 0.2% higher at 67.95 cents a pound. A rise of over 3% in hog futures earlier today was due to computerized fund trading, not connected to fundamentals. Longer term though, traders believe the Chinese will return to the export market for pork--a sentiment shared by US Agriculture Secretary Sonny Perdue. "We know their pork herd has been decimated by African swine fever," Perdue says. "We know they're in the market for pork." Meanwhile, live cattle futures finish down 0.3% to $1.05825. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Sep 19 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Sep 19       +$ 44.66            +$ 16.94 
Sep 18       +$ 41.99            +$ 14.23 
Sep 17       +$ 42.63            +$ 15.69 
 
* 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  106.8 
      (Percent of Year-Ago)     Select   99.0 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Thursday fell 7 cents per hundred pounds, to $218.17, according to the USDA. Select-grade prices rose 19 cents per hundred pounds, to $192.16. The total load count was 139. Wholesale pork prices rose $1.26, to $68.28 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

September 19, 2019 17:25 ET (21:25 GMT)

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