US and South Korea Reach Deal for Rice Exports -- Market Talk
1052 ET - The US and South Korea have entered into an agreement to allow US rice greater market access in Korea, the USDA announced. The deal will allow 132,304 tons of US rice --- an annual value of roughly $110M -- to enter and be sold in Korea. The deal makes it so US rice exports are now guaranteed to constitute roughly a third of the rice allowed into Korea at an in-quota 5% duty, with the rest of that amount being covered by imports from Australia, China, Thailand, and Vietnam. When imported rice exceeds the quote, that duty soars to 513%, according to the USDA. US rice production is expected to drop slightly this year, to 187.9 million cwt, according to USDA data. (firstname.lastname@example.org; @kirkmaltais)
STORIES OF INTEREST
Wheat Futures Track Global Prices Higher
Wheat for December delivery rose 0.9% to $5.12 a bushel on the Chicago Board of Trade on Tuesday, with the U.S. contract following European and Russian prices higher.
Corn for December delivery rose 0.6% to $3.70 a bushel.
Soybeans for January delivery rose 0.1% to $9.11 1/2 a bushel.
Rains Threaten Southern Africa's Key Planting Season -- Market Talk
1325 GMT - Chances of below-average rains across southern Africa are threatening the region's main cereal and grain planting season, says U.S.-funded research group FEWS NET, the Famine Early Warning Systems Network. In recent years, droughts have contributed to poor cropping, watering and pasture conditions even in nations such as South Africa and Zambia, which usually produce surplus grain. "Below average early-season rains experienced this year in Lesotho and parts of South Africa are likely to delay land preparation and planting in some areas," says FEWS NET. "In northern/central parts of the region, where rains typically start in early November, rainfall is at least [around 10 days] late." Reduced harvests mean countries in the region will continue to rely on corn imports from markets as far away as South America. (Nicholas.Bariyo@wsj.com;@Nicholasbariyo)
Australian Drought to Spark Weak Wheat Harvest -- Market Talk
1148 GMT - Australia's ongoing drought will lead to another weak wheat harvest and also hit dairy production, says Fitch Solutions. The credit-rating agency's research arm expects Australia to produce 18 million metric tons of the grain in the 2019-20 season, down from its previous forecast of 21 million tons. That outlook could fall again as dryness is more widespread compared to last year, Fitch says. Limited grain-feed supplies will eat into Australian milk production; Fitch expects output to fall to 8.8 million tons, the lowest in more than 20 years. Asian grain and dairy importers are consequently likely to ramp up purchases from the Black Sea, the EU and New Zealand. (email@example.com)
Livestock Futures Finish Day Lower -- Market Talk
15:32 ET - Livestock futures finish the day lower, led by lean-hog futures, which fell 0.9% to 69.625 cents a pound. This is despite indications pork supplies are starting to drop. Allendale projects US pork inventories will total 561M pounds through the end of October. This is a decrease of 20M pounds from the same time last year, and 38M pounds lower from last month. Meanwhile, the USDA's Cattle on Feed report is expected by Allendale to show October placements at their lowest level in seven years. Cattle futures finished less than 0.1% lower than last month, trading at $1.2505. (firstname.lastname@example.org; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Nov 19
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
* USDA revised
Date Standard Margin Estimated margin
Operating Index at vertically -
Nov 19 +$ 85.42 +$ 51.59
Nov 18 +$ 95.25 +$ 60.86
Nov 15 +$ 91.14 * +$ 57.72 *
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 112.0
(Percent of Year-Ago) Select 108.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell 11 cents per hundred pounds, to $239.01, according to the USDA. Select-grade prices fell 12 cents per hundred pounds, to $215.47. The total load count was 120. Wholesale pork prices fell $4.31, to $84.40 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
November 19, 2019 17:24 ET (22:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.