LIVESTOCK HIGHLIGHTS: Top Stories of the Day
23 January 2019 - 9:43AM
Dow Jones News
TOP STORIES
Saudi Arabia Halts Imports From 5 Brazilian Chicken Plants --
Market Talk
14:08 ET - Saudi Arabia has halted imports from five Brazilian
chicken processing plants due to technical problems at the plants,
according to the Brazilian Association of Animal Protein, or ABPA.
Saudi Arabia is the single biggest importer of chickens from
Brazil, buying about 12% of Brazil's chicken exports last year. The
owners of the plants need to take measures to correct the technical
problems before they'll be able to export to Saudi Arabia again, an
ABPA spokesman said. Saudi Arabia revoked export authorization for
33 Brazilian chicken plants, but of those, only five actually
export chickens at the moment, while another 25 Brazilian chicken
plants can still sell to the Middle Eastern country, the ABPA said.
(jeffrey.lewis@wsj.com)
STORIES OF INTEREST
Bunge Profit Warning Sets Lower Bar for 2019 -- Market Talk
16:23 ET - Bunge's announcement that full-year 2018 profits will
come in below the company's forecasted range prompts JPMorgan
analysts to cut their own forecasts for the agricultural company's
2019 and 2020 results, but the firm sees a silver lining for the
beleaguered crop-trading house. "These preliminary results
establish a relatively low bar for earnings growth and more
positive news flow in 2019," JPMorgan analysts write. JPMorgan
remains neutral-rated on the shares, though, as agricultural
markets remain tough for crop traders and "strategic actions,"
being evaluated by a new special committee of the board, may take
time. Bunge shares settle 2% lower, versus a 1.4% decline in the
S&P 500. (jacob.bunge@wsj.com; @jacobbunge)
USDA to Reopen All FSA Offices This Week -- Market Talk
15:42 ET - Secretary of Agriculture Sonny Perdue confirmed this
afternoon that the USDA would be reopening all Farm Service Agency
offices nationwide--and that the deadline for farmers to apply to
the Market Facilitation Program for financial aid to counteract
losses due to tariffs has been extended to February 14 from a
previous date of January 15. "At President Trump's direction, we
have been working to alleviate the effects of the lapse in federal
funding as best we can, and we are happy to announce the reopening
of FSA offices for certain services," says Perdue. The USDA will
keep FSA offices open five days per week during business hours
beginning January 24--with the schedule being reduced to three days
per week after two weeks unless the shutdown is resolved.
(kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Futures Finish Lower Today -- Market Talk
14:49 ET - Both live cattle and lean hog futures finished
trading lower today, with live cattle futures finishing down 1%
while lean hog futures finished 0.3% down. Analyst estimates
compiled by WSJ show that the cattle market expects supply growth
to exceed demand growth in the past month. However, a winter storm
hitting some parts of the Midwest could prove to drive cattle
futures up in the short term. Meanwhile, pork futures continue to
be weak with demand for pork products remaining steady.
(kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jan 22
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
Jan 22 +$ 29.24 +$ 14.50
Jan 21 +$ 30.77 +$ 16.58
Jan 18 +$ 28.85 +$ 14.43
* 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 105.5
(Percent of Year-Ago) Select 106.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose $1.08 per
hundred pounds, to $216.34, according to the USDA. Select-grade
prices rose 86 cents per hundred pounds, to $211.72. The total load
count was 94. Wholesale pork prices fell 97 cents, to $68.48 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
January 22, 2019 17:28 ET (22:28 GMT)
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