LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 19 2020 - 4:47PM
Dow Jones News
TOP STORIES
JBS Announces New Amazon Conservation Efforts
JBS SA on Monday unveiled its Together for the Amazon Program, a
series on initiatives to enhance conservation and development in
the Amazon.
"We are publicly reiterating our commitment to the
sustainability of the Amazon. We hope to scale up, not only in
combating deforestation, but also in fostering the bio-economy,
sustainable agriculture and social development", said Gilberto
Tomazoni, global chief executive of JBS.
STORIES OF INTEREST
Euronext Resolves Technical Issue That Halted European
Trading
Euronext NV said Monday that it had resolved a technical issue
that had halted trading across some of Europe's major markets.
The outage affected trading in all products operated by the
exchange including stocks, fixed income, and commodities.
Corn Rises as Chinese Futures Jump on Drought
Corn for December delivery gaining 0.8% to $4.05 1/4 a bushel,
on the Chicago Board of Trade Monday, rising in tandem with Chinese
corn futures amid drought issues there.
Soybeans for November delivery rose 0.4% to $10.54 1/4 a
bushel.
Wheat for December delivery rose 0.3% to $6.27 a bushel.
Export Sales Keep Grain Demand Outlook Optimistic -- Market
Talk
13:29 ET - Data released by the USDA this morning didn't show
any new flash sales to China by the US, but what it did show
seemingly has had a positive effect on the market's movement. The
USDA announced this morning that 345,000 metric tons of US corn
were sold to unknown destinations, and 123,000 tons of corn were
sold to Mexico. "China did not show up in the export market this
morning, but we did see a couple of good sales nevertheless," says
Dan Hueber of the Hueber Report. The indication of new sales is
likely the main factor keeping prices up, according to USDA data.
Corn is up 0.9%, soybeans rise 0.6% and wheat gains 0.9%.
(kirk.maltais@wsj.com; @kirkmaltais)
Brazil Soybean Planting Helped by Rains, Farmers Ready to Pick
Up Pace -- Market Talk
0854 ET - Brazilian farmers had planted 7.9% of the area
expected to be sown with soybeans in the 2020-2021 growing season
as of Oct. 15, the slowest start to the planting season in 10
years, according to agricultural consultant AgRural. The planting
has been slowed by a lack of rain, but recent precipitation in
various parts of the country's soybean-growing areas means
producers will be able to pick up the pace and start to catch up to
previous years, the consultancy said. The amount of moisture in the
soil is still below normal, however, so farmers are unlikely to
make up for all the lost ground in just one week, AgRural said.
Brazilian farmers will grow a record 133.7 million metric tons of
soybeans in 2020-2021, according to government crop agency Conab.
(jeffrey.lewis@wsj.com)
FUTURES MARKETS
Cattle Futures Close at Lowest Level in Over a Month -- Market
Talk
15:26 ET - Live cattle futures trading on the CME fell 3.2% to
$1.0515 per pound. That makes it eight consecutive sessions that
cattle futures have declined, falling 6.9% in that timeframe. A
decline in boxed beef prices appears to be occurring as well,
suggesting that both futures and wholesale prices are suffering as
cattle slaughters remain elevated. "Elevated slaughter rates are
keeping pressure on the beef market," says AgResource. "The decline
in beef prices is a little concerning as the market tends to forge
seasonal lows in the first half of October." Meanwhile, hog futures
closed 2.3% higher at 71.425 cents per pound.
(kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 19
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 19 +$ 66.11 +$ 81.29
Oct 16 +$ 69.08 +$ 83.49
Oct 15 +$ 71.55 +$ 88.45
* 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 96.2
(Percent of Year-Ago) Select 99.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell 29 cents per
hundred pounds, to $209.74, according to the USDA. Select-grade
prices fell $1.68 per hundred pounds, to $191.84. The total load
count was 114. Wholesale pork prices fell $1.02, to $96.88 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 19, 2020 17:32 ET (21:32 GMT)
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