LIVESTOCK HIGHLIGHTS: Top Stories of the Day
24 April 2018 - 7:54AM
Dow Jones News
TOP STORIES
Red Meat Supplies Grow, USDA Says -- Market Talk
16:24 ET - Beef and pork are piling up in US storage facilities,
the USDA says in its monthly report on cold-storage meat supplies.
Total red meat in cold storage in March was 7% higher than the
prior-year period and 1% higher than February's level, mainly
driven by surging pork supplies --in particular bellies, used to
make bacon, which zoomed 21% from February levels and 188% over
last year's diminished supplies. Elsewhere in pork, the amount of
boneless hams in storage has climbed to a record high this year,
along with chicken meat. (jacob.bunge@wsj.com; @jacobbunge)
Cheesy Compromise in Mexico-EU Trade Agreement -- Market
Talk
12:22 ET - Mexico's dairy industry chamber is celebrating the
agreement-in-principle reached over the weekend to update the
EU-Mexico free trade agreement. Local cheese makers will still be
able to use the name "manchego" for cheese made with cow's milk,
while Europe keeps the designation of origin for the "manchego"
cheese made with sheep's milk--a jealously guarded type of mature
cheese from Spain's La Mancha region. The European Commission,
meanwhile, notes improved market access for European dairy products
to Mexico, including a 20K ton quota phased in over five years for
mature cheeses and 5K tons for fresh cheeses.
(anthony.harrup@wsj.com)
STORIES OF INTEREST
Danone's 1Q Organic Growth Bodes Well for Rest of Year: UBS --
Market Talk
0946 GMT - Danone's first-quarter organic sales growth, driven
by a beat in all four divisions, bodes well for the rest of the
year, say analysts at UBS. The bank says the key investment
questions now are whether Danone's dairy division will accelerate
enough to make up for the expected slowdown in specialized
nutrition during the second half, whether Danone's EBIT margin
progress will be strong enough to sustain EPS growth and whether
Danone might sell its fresh-foods business to boost deleveraging.
"We think the market would likely take it as an incremental
positive", says UBS on a potential sale of the fresh-foods
business. Danone shares trade down 1.5% at EUR65.42.
(anthony.shevlin@dowjones.com)
Nestle's Pricing to Remain Soft in 2018: Berenberg -- Market
Talk
0833 GMT - Nestle's weak pricing during the first quarter was
evident in its slight increase of just 0.2%, and analysts at
Berenberg expect the trend of softer pricing to continue for the
rest of the year. The brokerage says Nestle is being hit by
deflation in Brazil--especially its dairy and confectionary
businesses--but that similar pricing woes are occurring in Russia
and sub-Saharan Africa. "Raw material prices are modest and are
unlikely to drive prices this year," says Berenberg. Nestle shares
trade down 0.8% at CHF74.62. (anthony.shevlin@dowjones.com)
FUTURES MARKETS
Cattle Futures Tread Higher on Slimming Supplies; Hogs Fall
CHICAGO--U.S. cattle futures advanced after feedlots signaled
they would scale back expansion, while hog futures dropped on
renewed concerns over U.S. trade policy.
June-dated live-cattle contracts settled 1.1% higher at $1.0487
a pound Monday at the Chicago Mercantile Exchange, lifted by a U.S.
Department of Agriculture report Friday that showed a 9%
year-over-year decline in the number of cattle placed onto U.S.
feedlots for fattening last month.
CASH MARKETS
Zumbrota, Minn Hog $2.00 Higher At $35.00 - Apr 23
Barrow and gilt prices at the Zumbrota, Minn., livestock market are
$2.00 higher at $35.00 per hundredweight.
Sow prices are steady. Sows weighing 400-450 pounds are at $33.00-$35.00,
450-500 pounds are $33.00-$35.00 and those over 500 pounds are $37.00-$39.00.
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 - Apr 23
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Apr 23 +$14.71 +$ 14.12
Apr 20 +$14.75 +$ 14.40
Apr 19 +$14.84 +$ 15.26
* 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 98.4
(Percent of Year-Ago) Select 98.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $3.13 per hundred
pounds, to $215.11, according to the USDA. Select-grade prices rose
$1.59 per hundred pounds, to $201.72. The total load count was 114.
Wholesale pork prices fell 13 cents, to $66.97 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
April 23, 2018 17:39 ET (21:39 GMT)
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