LIVESTOCK HIGHLIGHTS: Top Stories of the Day
September 21 2017 - 6:18PM
Dow Jones News
TOP STORIES
Amazon Puts Whole Foods on Fast Track to Conventional
Supermarket -- Update
Whole Foods will change the way companies can sell and market
their products in its stores beginning next year, one of the
biggest moves yet in its push to operate more like a traditional
market.
Under the changes planned for April, Whole Foods' 470 locations
will no longer allow brand representatives to promote their
products or check to make sure they are stocked and displayed
correctly.
STORIES OF INTEREST
Rural-Economy Health Gauge Hits Lowest in 2017 -- Market
Talk
11:10 ET - A monthly gauge of rural economy health falls to its
lowest point for the year, reflecting ongoing trouble in the US
Farm Belt. The index, drawn from a survey of farm bankers in 10
states by Creighton University, in September fell to 39.6, the
lowest level since December. Creighton says Midwestern lenders
remain pessimistic about the farm economy thanks to concerns over
low commodity prices, trade and a drought that struck parts of the
Farm Belt this year. About 51% of bankers reported restructuring
loans to farmers, according to Creighton, while nearly 19% say
they've increased collateral requirements. Still, farm-loan
defaults rise just 2.1% over the past year and delinquencies 4.1%.
One Illinois banker says early harvest results indicate the state's
crop will be 15% to 20% smaller than last year. "With this
reduction and current low prices our farmers' incomes will be
significantly less than 2016," he says. (jesse.newman@wsj.com;
@jessenewman13)
Food Prices Key Factor In Brazil's Inflation Patterns -- Market
Talk
08:13 ET - Brazilians have food prices to thank for a
surprisingly fast reduction in inflation over the past year, the
central bank said in its quarterly inflation report. Annual price
increases neared 11% in January 2016, before plunging to 2.46% last
month. Meanwhile, after expanding 9.4% in December 2016, food
prices contracted 5.2% in August. "The favorable food-price
dynamics since the fourth quarter of 2016 was an important
contribution to inflation reduction," the bank said. A rebound on
food-price increases is widely expected for 2018, the bank said,
pushing inflation forecasts closer to the bank's 4.5% target.
(paulo.trevisani@wsj.com; @ptrevisani)
FUTURES MARKETS
Hog Futures Fall on Supply Pressure
Hog futures fell to the lowest close this year on Thursday as
meatpackers seized on low cash prices to slaughter swine at a
record rate.
Two new pork packing plants that opened in the Midwest in
September have increased U.S. pork processing capacity. That has
sparked record-high slaughter numbers for this time of year without
a corresponding increase in demand, said Craig VanDyke of Top Third
Ag Marketing.
Hog futures on Thursday fell to a low for the year. October lean
hog contracts at the Chicago Mercantile Exchange fell 2.3% to
57.325 cents a pound, the lowest close since Dec. 13.
December-dated contracts fell 3.6% to 57.8 cents a pound.
CME October live cattle contracts fell 0.8% to $1.101 a
pound.
CASH MARKETS
Zumbrota, Minn Hog Steady At $33.00 - Sep 21
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $33.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are
$26.00-$28.00, 400-450 pounds are at $26.00-$28.00, 450-500 pounds
are $26.00-$28.00 and those over 500 pounds are $30.00-$32.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Sep 21
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Sep 21 +$44.76 +$26.61
Sep 20 +$49.54 +$33.08
Sep 19 +$47.92 +$33.32
* 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 103.2
(Percent of Year-Ago) Select 104.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday fell 53 cents per
hundred pounds, to $191.51, according to the USDA. Select-grade
prices fell 11 cents per hundred pounds, to $188.41. The total load
count was 139. Wholesale pork prices fell $3.01, to $72.78 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
September 21, 2017 18:03 ET (22:03 GMT)
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