LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Albertson's Sees Pockets Of Cost Inflation -- Market Talk
10:29 ET - Meat and poultry are still seeing the highest cost
inflation though prices are lower than they were earlier in the
year, said Albertsons executives during a 2Q earnings call. In
dairy, butter prices have come down but cheese and milk prices are
going up. Canned beverages are also experiencing cost inflation
because of restrictions on aluminum supply. (firstname.lastname@example.org;
STORIES OF INTEREST
Soybeans Up Amid South American Supply Questions
Soybeans for November delivery rose 0.8% to $4.05 1/4 a bushel
on the Chicago Board of Trade Tuesday on speculation that dry
weather in South America may lead to a decrease in the regions'
Corn for December delivery rose 0.4% to $10.54 1/4 a bushel.
Wheat for December delivery rose 0.3% to $6.27 a bushel.
South American Planting Delays Fuel Soybeans -- Market Talk
09:28 ET - Soybean futures on the CBOT trade 0.7% higher
pre-market, driven in large part by both South American planting
delays as well as strong export sales in the US, says Tomm
Pfitzenmaier of Summit Commodity Brokerage. "But as long as there
are weather concerns in South America and as long as China
continues to buy US beans, the bulls will continue to control the
soybean market," says Pfitzenmaier. Dry conditions in South America
have made it difficult for farmers because the crops they planted
need moisture to germinate. However, grain traders see soybean
futures as being close to their point of resistance--and may
succumb to the pressure of traders taking profits, he says.
Meanwhile, corn futures are up 0.1%, and wheat up 0.8%.
Weather Losing Influence on US Grains Futures -- Market Talk
08:57 ET - The weather market of recent months is losing its
hold of grain traders, says Karl Setzer of AgriVisor. "While US
weather is losing its influence on the commodity market conditions
are still being monitored," says Setzer. The reason for this is the
advanced pace of the US grains harvest, Setzer says. According to
the USDA's latest crop progress report released late yesterday, the
US corn harvest is 60% complete versus a five-year average of 43%.
The soybean harvest is 75% done versus a 5-year average of 58% --
and yet, grains futures on the CBOT were up in pre-market trading.
Movements of other comparable future contracts around the world
appear to be the main driver of grains futures movement pre-market
Tuesday. (email@example.com; @kirkmaltais)
Hog Futures Down as Chinese Pork Production Rises -- Market
15:18 ET - After rising 13.2% since the start of the month,
most-active lean hog futures trading on the CME closed trading
Tuesday down 3.1% to 69.25 cents per pound. The decline in futures
came as China announced that its domestic pork production has
jumped in an effort to make up for its staggering losses from the
African swine fever epidemic among its hog herds. "Chinese pork
output for the 3rd quarter showed an 18% increase from the same
quarter a year ago," says Karl Setzer of AgriVisor. "This is the
first quarter on quarter increase in Chinese pork production since
prior to the African Swine Fever outbreak." Meanwhile, live cattle
futures on the CME closed up 0.3% to $1.0545 per pound.
Estimated U.S. Pork Packer Margin Index - Oct 20
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Oct 20 +$ 61.58 +$ 79.72
Oct 19 +$ 66.11 +$ 81.29
Oct 16 +$ 69.08 +$ 83.49
* 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 95.7
(Percent of Year-Ago) Select 98.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose 86 cents per
hundred pounds, to $210.60, according to the USDA. Select-grade
prices fell 17 cents per hundred pounds, to $191.67. The total load
count was 190. Wholesale pork prices fell 73 cents, to $96.15 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 20, 2020 17:36 ET (21:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.