LIVESTOCK HIGHLIGHTS: Top Stories of the Day
July 12 2019 - 4:55PM
Dow Jones News
TOP STORIES
USDA Forecasts Show It Isn't Banking on Trade Deal: Rabo -- Market Talk
1005 GMT - After a planting season ravaged by poor weather,
traders of U.S. farm produce have been focusing on the outlook for
supply. But for Stefan Vogel, head of agricultural commodity
markets at Rabobank, one of the most important developments in the
U.S. Department of Agriculture's latest WASDE report is its gloomy
outlook for demand. The USDA cut its forecast for U.S. soybean
exports in the 2019-20 season by 75 million bushels to 1.875
billion bushels, saying this reflected lower supplies and stiffer
competition from South American producers. Vogel says the figures
show the USDA expects slower growth in demand for animal feed and
isn't banking on a trade deal being reached in China.
(joe.wallace@wsj.com)
STORIES OF INTEREST
Red Robin Closes a Colorado Restaurant on E. Coli Concerns -Nation's Restaurant News
Red Robin Gourmet Burgers Inc. (RRGB) closed a Westminster,
Colo., restaurant after three customers tested positive for E.
coli, Nation's Restaurant News reported.
Tropical Storm Barry a Question Mark for Grains Traders -- Market Talk
09:05 ET - Tropical Storm Barry looks to cause more flooding in
areas off of the Mississippi River but possibly provide little
moisture to the rest of the Midwest -- a sort-of worst-case
scenario for farmers. "The forecast models are similar in their
handling of Barry with flooding rains through the spine of the
Mississippi River," says AgResource. "However, the storm quickly
dissipates as it reaches [southern Illinois] leaving limited totals
for the northern 2/3[rds]'s of the state along with [Indiana and
Ohio]." It is an about-face for many states that suffered too much
wetness during the planting season, but for the crops that made it
to the ground and survived, water is now needed.
(kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Market Caps Week With Gains -- Market Talk
15:35 ET - Livestock futures on the CBOT finish higher --
leaving both lean hog and live cattle futures with gains at the end
of the week. August live cattle futures close up 0.6% for the day
at $1.08475 per pound, an increase of 1.3% for the week. Meanwhile,
lean hog futures finished up 1.9% for the day at 80.65 cents per
pound, which is an increase of 4.5% for the week. Indications that
swine fever in Asia could finally translate into higher demand for
US exports helped push the price up throughout the week.
(kirk.maltais@wsj.com, @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jul 12
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Jul 12 -$ 2.52 +$ 21.86
Jul 11 -$ 1.61 +$ 22.42
Jul 10 -$ 2.28 +$ 21.34
* 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 103.0
(Percent of Year-Ago) Select 96.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell 97 cents per
hundred pounds, to $212.80, according to the USDA. Select-grade
prices fell $1.19 per hundred pounds, to $189.60. The total load
count was 109. Wholesale pork prices fell 26 cents, to $70.57 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 12, 2019 17:40 ET (21:40 GMT)
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