LIVESTOCK HIGHLIGHTS: Top Stories of the Day
12 July 2018 - 7:54AM
Dow Jones News
TOP STORIES
Tariffs Likely Threaten Already Weak Food Price Increases --
Market Talk
11:07 ET - Producer price increases for meat, vegetables, dairy
and other food commodities continued to show weak annual growth in
June, potentially pressuring growers and food retailers that want
moderate inflation, according to Jefferies. Food retail "prices
could be flirting dangerously close to deflationary territory," if
they don't bump up soon, writes BMO Capital Markets. "Global trade
relations and tariffs add additional uncertainty to the outlook for
commodity prices," the investment bank writes.
(heather.haddon@wsj.com; @heatherhaddon)
Supreme Court Pick Has Fans in Cattle Country -- Market Talk
10:27 ET - As Judge Brett Kavanaugh girds for the confirmation
process following his nomination to the Supreme Court, he has some
friends among cattle ranchers, who continue to trumpet one of his
rulings on the US Court of Appeals. There, Kavanaugh voted to
uphold a 2013 law that required beef and pork sold in the US to
bear labels detailing where the livestock was born, raised and
harvested--a law protested by meat companies and some livestock
groups, which feared the cost and perception of such labels.
Monanta-based ranchers' group R-CALF, though, saw the law boosting
consumption of American-produced meat, and praised Kavanaugh for
voting with the majority in upholding the law. The Obama
administration and Congress later repealed the labeling requirement
under pressure from the WTO, though R-CALF has called on President
Trump to revive it. (jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
FDA Targets Food Labels In Vending Machines -- Market Talk
13:44 GMT - The US Food & Drug Administration wants
Americans to make better food choices when it comes to the candy
bars and chips they buy from vending machines. The agency has
published a proposed rule to revise front-of-package labeling
requirements on calories for packaged foods sold in glass front
vending machines. The FDA is proposing the type size on calorie
disclosures be at least 1.5 times that disclosing the net weight.
Calorie counts have become a key area in the battleground for share
between packaged foods makers as consumers flee for fresh and
healthier choices. The proposal comes after the FDA in May began
requiring restaurant chains to list calories for food and alcohol
on menus. (Saabira.Chaudhuri@wsj.com; @SaabiraC)
Former McDonald's International Executive to Lead Dunkin' Brands
-- Update
The owner of Dunkin' Donuts and Baskin-Robbins said Chief
Executive Nigel Travis has left his position, ending a more than
nine-year tenure where he brought the company public and extended
the domestic and international reach of its brands.
Dunkin' Brands Group Inc. on Wednesday named David Hoffmann as
its new CEO, with Mr. Travis transitioning to the role of executive
chairman. Mr. Travis said Mr. Hoffman was hired from McDonald's
Corp. with the intent of him becoming the company's next
leader.
FUTURES MARKETS
Livestock Futures Mostly Lower on Trade Flare-Up
Livestock markets were under pressure on Wednesday after the
latest salvo in the U.S. and China's ongoing trade dispute.
Live cattle futures for August delivery fell 1.5% to $1.0385 a
pound at the Chicago Mercantile Exchange, trading at the lowest
point since May.
Lean hogs were among the few commodities to resist the selloff,
however. July-dated contracts rose 0.3% to 79.775 cents a pound,
halting a four-day losing streak, but futures for delivery later
this year fell.
CASH MARKETS
Zumbrota, Minn Hog Steady at $51.00 - Jul 11
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are steady at $51.00 per hundredweight.
Sow prices are $2.00-$3.00 lower. Sows weighing 400-450 pounds
are at $36.00-$37.00, 450-500 pounds are $36.00-$37.00 and those
over 500 pounds are at $38.00-$40.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Jul 11
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Jul 11 +$ 9.44 +$48.00
Jul 10 +$ 7.85 +$47.74
Jul 9 +$ 10.51 +$51.27
* 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 97.5
(Percent of Year-Ago) Select 99.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose 12 cents per
hundred pounds, to $207.44, according to the USDA. Select-grade
prices fell $1.25 per hundred pounds, to $197.14. The total load
count was 144. Wholesale pork prices rose 12 cents, to $82.73 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 11, 2018 17:39 ET (21:39 GMT)
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