TOP STORIES

JBS Announces New Amazon Conservation Efforts

JBS SA on Monday unveiled its Together for the Amazon Program, a series on initiatives to enhance conservation and development in the Amazon.

"We are publicly reiterating our commitment to the sustainability of the Amazon. We hope to scale up, not only in combating deforestation, but also in fostering the bio-economy, sustainable agriculture and social development", said Gilberto Tomazoni, global chief executive of JBS.

STORIES OF INTEREST

Euronext Resolves Technical Issue That Halted European Trading

Euronext NV said Monday that it had resolved a technical issue that had halted trading across some of Europe's major markets.

The outage affected trading in all products operated by the exchange including stocks, fixed income, and commodities.

Corn Rises as Chinese Futures Jump on Drought

Corn for December delivery gaining 0.8% to $4.05 1/4 a bushel, on the Chicago Board of Trade Monday, rising in tandem with Chinese corn futures amid drought issues there.

Soybeans for November delivery rose 0.4% to $10.54 1/4 a bushel.

Wheat for December delivery rose 0.3% to $6.27 a bushel.

Export Sales Keep Grain Demand Outlook Optimistic -- Market Talk

13:29 ET - Data released by the USDA this morning didn't show any new flash sales to China by the US, but what it did show seemingly has had a positive effect on the market's movement. The USDA announced this morning that 345,000 metric tons of US corn were sold to unknown destinations, and 123,000 tons of corn were sold to Mexico. "China did not show up in the export market this morning, but we did see a couple of good sales nevertheless," says Dan Hueber of the Hueber Report. The indication of new sales is likely the main factor keeping prices up, according to USDA data. Corn is up 0.9%, soybeans rise 0.6% and wheat gains 0.9%. (kirk.maltais@wsj.com; @kirkmaltais)

Brazil Soybean Planting Helped by Rains, Farmers Ready to Pick Up Pace -- Market Talk

0854 ET - Brazilian farmers had planted 7.9% of the area expected to be sown with soybeans in the 2020-2021 growing season as of Oct. 15, the slowest start to the planting season in 10 years, according to agricultural consultant AgRural. The planting has been slowed by a lack of rain, but recent precipitation in various parts of the country's soybean-growing areas means producers will be able to pick up the pace and start to catch up to previous years, the consultancy said. The amount of moisture in the soil is still below normal, however, so farmers are unlikely to make up for all the lost ground in just one week, AgRural said. Brazilian farmers will grow a record 133.7 million metric tons of soybeans in 2020-2021, according to government crop agency Conab. (jeffrey.lewis@wsj.com)

FUTURES MARKETS

Cattle Futures Close at Lowest Level in Over a Month -- Market Talk

15:26 ET - Live cattle futures trading on the CME fell 3.2% to $1.0515 per pound. That makes it eight consecutive sessions that cattle futures have declined, falling 6.9% in that timeframe. A decline in boxed beef prices appears to be occurring as well, suggesting that both futures and wholesale prices are suffering as cattle slaughters remain elevated. "Elevated slaughter rates are keeping pressure on the beef market," says AgResource. "The decline in beef prices is a little concerning as the market tends to forge seasonal lows in the first half of October." Meanwhile, hog futures closed 2.3% higher at 71.425 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Oct 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. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Oct 19       +$ 66.11            +$ 81.29 
Oct 16       +$ 69.08            +$ 83.49 
Oct 15       +$ 71.55            +$ 88.45 
 
* 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   96.2 
      (Percent of Year-Ago)      Select   99.4 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Monday fell 29 cents per hundred pounds, to $209.74, according to the USDA. Select-grade prices fell $1.68 per hundred pounds, to $191.84. The total load count was 114. Wholesale pork prices fell $1.02, to $96.88 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

October 19, 2020 17:32 ET (21:32 GMT)

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