TOP STORIES

Swine Fever to Boost U.S., European Meat Exports in 2020: Citi -- Market Talk

1041 GMT - American, Brazilian and European meat producers will continue to benefit from African Swine Fever next year, says Aakash Doshi at Citi. The disease, which is fatal to pigs, has spread to every Chinese province as well as Vietnam, Myanmar, South Korea and elsewhere. "The spread of ASF is unlikely to be resolved in 2020 and rather than improving, the situation has deteriorated," Doshi says. He expects China to import a record 3.5 million to 4 million metric tons of pork from the U.S., Brazil and Europe next year, as well as shipping in poultry and beef to meet domestic protein demand. Soaring meat prices in China should make it attractive for U.S. producers to export even if tariffs remain in place, Doshi adds. (joe.wallace@wsj.com)

More Products Added to Canada Beef and Veal Recall List

The Canadian Food Inspection Agency updated a beef and veal recall warning related to E.coli concerns, with 828 entries on its list of recalled consumer products. The agency has also recalled meat products sold to hotels, restaurants and institutions.

The CFIA's Tuesday update details products including beef stew and boneless blade steak and lists several Ontario retailers.

STORIES OF INTEREST

Dominion Energy, Smithfield Foods Boost Investment in Renewable Natural Gas

Dominion Energy Inc. (D) and Smithfield Foods Inc. said they are doubling their investment in U.S. renewable natural gas projects to $500 million through 2028.

The companies said the additional investment will expand their Align Renewable Natural Gas joint venture.

Kraft Heinz to Keep Italian Baby Food Brands -- Reuters

An executive at Kraft Heinz Co. (KHC) told Reuters the struggling food maker won't sell its Italy-based baby food brands.

Instead, Chicago-based Kraft Heinz will keep the Plasmon line and related smaller brands in house and try to grow the products in other markets, Reuters said. Earlier, the food maker considered selling those assets.

FUTURES MARKETS

Livestock Futures Climb as Cattle Nears 3-Month High -- Market Talk

15:31 ET - Livestock futures on the CME reversed early losses to finish higher ahead of Friday's USDA data. Live cattle futures rose 1.4% at $1.1525 per pound, its highest close in nearly three months. Expectations that this month's Cattle on Feed report will show a tighter domestic supply picture was the main driver for cattle's rise. Traders believe that the amount of cattle on feed will drop by roughly 1 percentage point, totaling over 11 million head. Cattle placements and marketings are both estimated to rise by 1-2 percentage points. Hog futures also rose, by 0.5% to 65.825 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Oct 23 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Oct 23       +$ 36.36            +$ 30.11 
Oct 22       +$ 35.88            +$ 32.42 
Oct 21       +$ 38.92            +$ 37.60 
 
* 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  106.2 
      (Percent of Year-Ago)     Select  101.1 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday rose $2.35 per hundred pounds, to $223.28, according to the USDA. Select-grade prices rose 86 cents per hundred pounds, to $198.94. The total load count was 109. Wholesale pork prices fell $1.07, to $74.41 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

October 23, 2019 16:55 ET (20:55 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.