LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 18 2019 - 5:40PM
Dow Jones News
TOP STORIES
China and Mexico Drive Big Pork Export Week -- Market Talk
08:56 ET - Net export sales of US pork rose to 292,200 metric
tons in the week ending Oct. 10, driven primarily by purchases by
Mexico and China, the USDA says. Mexico purchased 132,400 tons,
while China bought 94,000 tons. Japan was also a big buyer,
purchasing 46,400 tons. This data will likely be bullish for hog
futures, as traders have been agitating for tangible results from
the trade talks held in Washington last week. Both the US and China
have promised increased agricultural export purchases by China
following the talks. However, with the data ending Oct. 10, this
week's report does not account for post-trade talk buying.
(kirk.maltais@wsj.com; @kirkmaltais)
Vietnam a Viable Destination for Increased Protein Exports --
Market Talk
1019 ET - Vietnam will grow in importance as a destination for
agricultural goods, says USDA's Ted McKinney, speaking during a
trade mission in the nation. Particularly, McKinney expects protein
purchases from the US to grow quickly in Vietnam, as preparations
for the Lunar New Year are taking place while there's no end in
sight for African swine fever's devastation of the country's pig
herds. "It's tough to say if African swine fever is contained, I
haven't seen any credible reports," says McKinney, who says that
while buyers in the area are not in a state of panic over the
disease, they do expect to have to buy more US protein. The
Undersecretary estimates that Vietnam has lost 20% of its pig herd
due to the disease. (kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST
Danone Investors Shouldn't Overreact to 3Q Results: Bernstein --
Market Talk
0909 GMT - Danone investors shouldn't overreact to the company's
3Q print, Bernstein analysts say. The food company met reported
sales expectations, but its like-for-like sales growth
disappointed, leading to a cut to the company's full-year guidance,
Bernstein says. However, the brokerage says weather impact on the
French company's waters division accounted for a large part of the
disappointment, and notes that the new guidance still assumes a
nice further speed-up of sales growth in 4Q. Given Danone shares'
strong year-to-date performance, Bernstein isn't surprised by the
stock's weakness today. At 0907 GMT, Danone was down 7.4% at
EUR72.80. (cristina.roca@dowjones.com)
FSIS: Houston Company Recalls Canned Meat Due to Lack of Import
Re-Inspection
A Houston company is recalling about 100 pounds of canned meat
products that weren't presented for import re-inspection, according
to the U.S. Department of Agriculture's Food Safety and Inspection
Service.
Global Zakii Enterprises is recalling items including Unium
Luncheon Meat and Bishaway Extra Corned Beef.
FUTURES MARKETS
Livestock Futures Finish Friday Lower -- Market Talk
15:23 ET - Livestock futures on the CME fall to finish the week,
with live cattle down 0.7% to $1.13625 per pound and lean hogs
dropping 0.3% to 67.95 cents per pound. For the week though, cattle
futures finish 1% higher, while hogs are 3.7% lower. For hogs,
there's speculation China may be rebuilding its hog herd with an
aim for increased production in early 2020. "This seems optimistic
as African swine fever is still spreading through parts of the
country," says Karl Setzer of AgriVisor. "China is importing hogs
to try and build a herd though, which may help with the quicker
rebound in production." (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 18
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 18 +$ 39.17 +$ 34.16
Oct 17 +$ 29.26 +$ 32.50
Oct 16 +$ 29.99 +$ 35.06
* 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 105.4
(Percent of Year-Ago) Select 100.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell 7 cents per
hundred pounds, to $218.04, according to the USDA. Select-grade
prices rose 44 cents per hundred pounds, to $193.04. The total load
count was 97. Wholesale pork prices rose 77 cents, to $76.29 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 18, 2019 17:25 ET (21:25 GMT)
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