LIVESTOCK HIGHLIGHTS: Top Stories of the Day
19 June 2019 - 7:50AM
Dow Jones News
TOP STORIES
Higher Livestock Production Weighs on Futures -- Market Talk
12:07 ET - The recent downward movement of livestock
futures--both cattle and hogs--is linked to the higher production
of livestock in the US seen this year, particularly for hogs. "Hog
price performance in recent weeks may have been disappointing but
probably not that surprising for those that have been following
production trends," Steiner Consulting says. According to USDA
data, hog slaughter rates are up 2.43M head, 10% higher than this
time last year. Steiner projects that the rate will be 2.35M head
by the end of the year, 9% higher than last year. Heavier hogs are
also affecting supply, as each hog slaughtered is yielding more
pork. July hog futures are up 0.1%. (kirk.maltais@wsj.com;
@kirkmaltais)
STORIES OF INTEREST
China Cracks Down on Canadian Pork
OTTAWA -- Canada said Tuesday China has banned imports from a
Canadian pork company, weeks after Canadian officials warned the
meat industry of heightened Chinese scrutiny of its products amid a
broader diplomatic row between Ottawa and Beijing.
A spokeswoman for Canada's Agriculture Minister, Marie-Claude
Bibeau, said Canadian diplomats in Beijing were informed last week
of the temporary suspension of pork imports from a Quebec
processor, Frigo Royal. Customs agents in China are said to have
found traces of a feed additive, ractopamine, in a shipment of
frozen pork. Ractopamine is banned in China, the spokeswoman said,
although allowed for use by Canadian food-safety authorities.
Japan a Focus for Sending More US Agriculture Exports -- Market
Talk
12:18 ET - USTR Robert Lighthizer says that negotiations are
continuing with Japan in order to open up the country further for
US agricultural and livestock exports--especially important
considering the trade standoff with China and a need for
alternative markets as a result. Lighthizer, testifying to
legislators on the Senate Finance Committee, says the US is "making
headway" with working out a larger agreement with Japan, with more
headway hopefully coming during the G-20 Summit in Japan.
Agricultural futures on the CBOT are largely down today, with corn
down 1.2% and wheat down 1.5%. Soybeans are up 0.1%.
(kirk.maltais@wsj.com; @kirkmaltais)
Trump Administration Weighs Further Boost to Ethanol
The Trump administration is looking to make further changes to
ethanol rules after the president heard from farmers during a
recent trip to Iowa that an initiative to boost sales of the
corn-based fuel additive didn't go far enough, according to people
familiar with the matter.
Possible remedies could include limiting waivers that help small
oil refiners get around mandates that they blend plant-based fuels
into gasoline and diesel, these people said. They cautioned that no
decisions have been made.
FUTURES MARKETS
Livestock Finishes Lower After Late Slide -- Market Talk
16:04 ET - Despite trading higher for most of the day, both live
cattle and lean hog futures finished lower. August live cattle
futures fall 0.1% to $1.0550 per pound while August hog futures
slip 0.7% to 81.7 cents per pound. Cutout values for both hogs and
cattle were lower today -- with pork belly and rib both losing over
$6 per pound. Ample supply is the reason given by traders for the
falling prices. (kirk.maltais@wsj.com, @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jun 18
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Jun 18 +$ 1.85 +$ 42.00
Jun 17 +$ 5.42 +$ 45.38
Jun 14 +$ 6.99 +$ 46.33
* 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 99.9
(Percent of Year-Ago) Select 98.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $1.29 per
hundred pounds, to $220.53, according to the USDA. Select-grade
prices fell 71 cents per hundred pounds, to $201.80. The total load
count was 137. Wholesale pork prices fell $1.57, to $79.94 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 18, 2019 17:35 ET (21:35 GMT)
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