LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 17 2019 - 5:38PM
Dow Jones News
TOP STORIES
Tyson Foods Bans Use of Feed Ingredient Ractopamine in Hogs It
Buys
Tyson Foods Inc. (TSN) on Thursday said its Tyson Fresh Meats
unit will prohibit the use of the feed ingredient ractopamine in
the hogs it buys from farmers in a bid to meet rising global demand
for U.S. pork.
The Springdale, Ark., meat giant said that while the U.S. Food
and Drug Administration has approved ractopamine, which helps
increase the amount of lean meat in hogs, some countries, such as
China, prohibit the import of pork from hogs that have been given
the product.
Higher Meat Prices Could Pressure Margins At Kraft Heinz --
Market Talk
11:51 ET - Kraft Heinz may face margin pressure as Chinese
buyers ramp up beef, chicken and pork imports and protein prices
increase, Wells Fargo says. "Meats comprise one of its 'big four'
inputs and its history of passing through cost-driven pricing has
been mixed," analysts say of Kraft Heinz. Meat-related
categories--the company's Oscar Mayer unit makes bacon, sausage,
cold cuts and more--make up about 20% of Kraft Heinz's retail-level
sales, according to Wells Fargo research. China has been importing
more proteins after pig herds in the country were culled due to the
African swine fever outbreak. (micah.maidenberg@wsj.com;
@MicahMaidenberg)
U.S. Alert Issued for Certain Beef Products in Connection With
Canada Recall
Certain beef products recalled in Canada due to E.coli concerns
were available in the U.S., according to an alert from the U.S.
Department of Agriculture's Food Safety and Inspection Service.
FSIS mentioned items including certain DeVanco Foods gyros
slices and Shop-Rite burgers.
STORIES OF INTEREST
Cargill Reports Explosion at Kansas Beef Plant -- Market
Talk
10:19 ET - Cargill reports an explosion at a small, standalone
building that's part of its Dodge City, Kan. beef-processing
complex, leading the agricultural company to suspend operations
Thursday at the plant as "an extra precaution," a spokesman says.
Two employees are being treated for burns, and Cargill expects to
meet all of its supply commitments to beef buyers. The cattle
markets are extra sensitive to any plant mishaps after a big fire
hit a Tyson Foods beef complex in August, reducing the amount of US
cattle able to be processed by around 5%, and sending cattle
futures prices lower. ( jacob.bunge@wsj.com ; @jacobbunge)
Beyond Meat Feels Competitive Heat -- Market Talk
12:46 ET - Beyond Meat shares slide 4.7% as investors mull the
meat alternative makers' prospects versus deep-pocketed competitors
in the traditional meat world. Dining and entertainment chain Dave
& Buster's says its 130 locations will swap out the Impossible
Foods' plant-based burgers for rival versions produced by
Lightlife, a subsidiary of Canadian meat giant Maple Leaf Foods.
Beyond and Impossible have revolutionized veggie burgers by
producing new patties that more closely resemble ground beef, but
meat giants like Maple Leaf, Tyson Foods and JBS have rapidly
followed, heightening competition in the fast-growing sector.
(jacob.bunge@wsj.com; @jacobbunge)
FUTURES MARKETS
Hog Stays Lower as Traders 'Numb' to US-China Talks -- Market
Talk
15:15 ET - Hog futures on the CME held lower throughout
Thursday's session, with traders viewing developments in the
US-China trade war with high skepticism, says Steve Wagner of CHS
Hedging. "Everyone in this industry is numb to that drum beat,"
says Wagner, noting that hog futures have stayed in a tight trading
range for months. Wagner is also skeptical that tomorrow's export
sales report from the USDA will yield enough good news to
dramatically change the direction of the hog contract, and instead
the seasonal jump in pork consumption around the holidays may do
that. Hog futures finished down 3.5% at 68.15 cents per pound.
Meanwhile, cattle futures rose 0.4% to $1.14375 per pound -- levels
unseen since early August. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 17
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 17 +$ 29.26 +$ 32.50
Oct 16 +$ 29.99 +$ 35.06
Oct 15 +$ 32.34 +$ 36.31
* 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 106.6
(Percent of Year-Ago) Select 100.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday fell 17 cents per
hundred pounds, to $218.11, according to the USDA. Select-grade
prices rose $1.23 per hundred pounds, to $192.60. The total load
count was 146. Wholesale pork prices fell $1.19, to $75.52 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 17, 2019 17:23 ET (21:23 GMT)
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