LIVESTOCK HIGHLIGHTS: Top Stories of the Day
May 23 2017 - 5:59PM
Dow Jones News
TOP STORIES
Glencore Makes Takeover Approach to Bunge -- 4th Update
Glencore PLC said Tuesday it has approached grain trader Bunge
Ltd. about a merger, a deal that would make the Swiss mining giant
a major player in the U.S. agriculture market.
In confirming the approach, Glencore said there is no certainty
such a combination will materialize. If a deal does emerge, it
would be substantial: Bunge had a market value earlier Tuesday of
nearly $10 billion; including debt, its so-called enterprise value
was about $15 billion. After The Wall Street Journal first reported
on the approach, Bunge shares surged as much as 17%.
Shares of Brazil's JBS Fall, But Selling Pace Slows -- Market
Talk
09:32 ET - Shares of Brazilian meatpacking giant JBS SA,
implicated in the country's biggest-ever corruption investigation,
open 1.3% lower, trading at 5.90 reais ($1.8), after plunging more
than 30% Monday in Sao Paulo. Last week, the country's top court
released plea-bargain testimony from JBS's owners accusing
President Michel Temer and his two predecessors of receiving
millions of dollars in bribes. The three presidents have all denied
wrongdoing. Temer, who faces increasing pressure to resign amid the
allegations, has also accused JBS's chairman, Joesley Batista, of
insider trading and of manipulating evidence used against him.
Batista has denied the accusations. JBS says its operations are
continuing at a normal pace, as set out in its business plan. JBS
also says it has a robust financial situation.
(Luciana.Magalhaes@wsj.com)
STORIES OF INTEREST
USDA Boss Warns of Agency Job Cuts -- Market Talk
13:02 ET - "There's no sugarcoating what we will face," USDA
Secretary Sonny Perdue tells USDA staff in a video message after
the Trump administration unveiled a budget proposal that would
slash the agency's budget by around 21%, alongside reductions in
Farm Bill program funding. "Such budgetary restrictions could
possibly mean a reduction in staff," Perdue warns the USDA's
roughly 100,000 employees, saying any reductions would initially
come through "normal attrition, early retirements, and other
least-disruptive means." Perdue says Trump is following through on
campaign pledges to realign government spending, and advises USDA
rank and file that "when you get in a bind, don't whine."
(jacob.bunge@wsj.com; @jacobbunge)
Congressional Leaders Vow Budget Fight For Farmers -- Market
Talk
09:24 ET - House Agriculture Committee Chairman Michael Conaway
and Senate Agriculture Committee Chairman Pat Roberts promise to go
to bat for farmers in upcoming debates over a federal budget that
proposes slashing funding for certain farm subsidies. "We will
fight to ensure farmers have a strong safety net so this key
segment of our economy can weather current hard times," the two
congressional leaders say. The Trump administration's budget
proposal comes while US farm incomes are expected to drop for a
fourth straight year, and proposes $38B in spending cuts on
subsidies for farmers. (jesse.newman@wsj.com; @jessenewman13)
FUTURES MARKETS
Lower Beef Prices Weigh on Cattle Futures
CHICAGO -- Cattle futures sank Tuesday as lower beef prices
spurred bets that the market was unwinding from its seasonal
peak.
Wholesale beef prices fell sharply Tuesday morning to $2.46 per
pound from a little under $2.48 a pound on Monday. That added
pressure to live cattle futures, with June contracts closing 0.7%
lower at $1.23075 a pound at the Chicago Mercantile Exchange.
August feeder cattle futures also fell.
CASH MARKETS
Zumbrota, Minn Hog Steady At $47.00 - May 23
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $47.00 per hundredweight. Sow prices are
steady. Sows weighing under 450 pounds are $40.00-$42.00, 400-450
pounds are at $40.00-$42.00, 450-500 pounds are $40.00-$42.00 and
those over 500 pounds are $44.00-$46.00.
The day's total run is estimated at 150 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - May 23
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
May 23 +$33.58 +$ 62.62
May 22 +$31.86 +$ 59.51
May 19 +$27.56 +$ 56.17
* 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 108.8
(Percent of Year-Ago) Select 106.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $2.14 per
hundred pounds, to $245.74, according to the USDA. Select-grade
prices fell $1.66 per hundred pounds, to $221.17. The total load
count was 144. Wholesale pork prices rose $1.45, to $89.53 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 23, 2017 17:44 ET (21:44 GMT)
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