LIVESTOCK HIGHLIGHTS: Top Stories of the Day
24 October 2019 - 8:10AM
Dow Jones News
TOP STORIES
Swine Fever to Boost U.S., European Meat Exports in 2020: Citi
-- Market Talk
1041 GMT - American, Brazilian and European meat producers will
continue to benefit from African Swine Fever next year, says Aakash
Doshi at Citi. The disease, which is fatal to pigs, has spread to
every Chinese province as well as Vietnam, Myanmar, South Korea and
elsewhere. "The spread of ASF is unlikely to be resolved in 2020
and rather than improving, the situation has deteriorated," Doshi
says. He expects China to import a record 3.5 million to 4 million
metric tons of pork from the U.S., Brazil and Europe next year, as
well as shipping in poultry and beef to meet domestic protein
demand. Soaring meat prices in China should make it attractive for
U.S. producers to export even if tariffs remain in place, Doshi
adds. (joe.wallace@wsj.com)
More Products Added to Canada Beef and Veal Recall List
The Canadian Food Inspection Agency updated a beef and veal
recall warning related to E.coli concerns, with 828 entries on its
list of recalled consumer products. The agency has also recalled
meat products sold to hotels, restaurants and institutions.
The CFIA's Tuesday update details products including beef stew
and boneless blade steak and lists several Ontario retailers.
STORIES OF INTEREST
Dominion Energy, Smithfield Foods Boost Investment in Renewable
Natural Gas
Dominion Energy Inc. (D) and Smithfield Foods Inc. said they are
doubling their investment in U.S. renewable natural gas projects to
$500 million through 2028.
The companies said the additional investment will expand their
Align Renewable Natural Gas joint venture.
Kraft Heinz to Keep Italian Baby Food Brands -- Reuters
An executive at Kraft Heinz Co. (KHC) told Reuters the
struggling food maker won't sell its Italy-based baby food
brands.
Instead, Chicago-based Kraft Heinz will keep the Plasmon line
and related smaller brands in house and try to grow the products in
other markets, Reuters said. Earlier, the food maker considered
selling those assets.
FUTURES MARKETS
Livestock Futures Climb as Cattle Nears 3-Month High -- Market
Talk
15:31 ET - Livestock futures on the CME reversed early losses to
finish higher ahead of Friday's USDA data. Live cattle futures rose
1.4% at $1.1525 per pound, its highest close in nearly three
months. Expectations that this month's Cattle on Feed report will
show a tighter domestic supply picture was the main driver for
cattle's rise. Traders believe that the amount of cattle on feed
will drop by roughly 1 percentage point, totaling over 11 million
head. Cattle placements and marketings are both estimated to rise
by 1-2 percentage points. Hog futures also rose, by 0.5% to 65.825
cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 23
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 23 +$ 36.36 +$ 30.11
Oct 22 +$ 35.88 +$ 32.42
Oct 21 +$ 38.92 +$ 37.60
* 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 106.2
(Percent of Year-Ago) Select 101.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $2.35 per
hundred pounds, to $223.28, according to the USDA. Select-grade
prices rose 86 cents per hundred pounds, to $198.94. The total load
count was 109. Wholesale pork prices fell $1.07, to $74.41 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 23, 2019 16:55 ET (20:55 GMT)
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