LIVESTOCK HIGHLIGHTS: Top Stories of the Day
September 19 2019 - 5:40PM
Dow Jones News
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)
Copyright (c) 2019 Dow Jones & Company, Inc.