LIVESTOCK HIGHLIGHTS: Top Stories of the Day
March 13 2019 - 5:47PM
Dow Jones News
TOP STORIES
US Dairy Farms Drying Up, USDA Says -- Market Talk
1020 ET - More than 2,700 dairy farms closed in 2018, according
to USDA figures, as milk producers from Wisconsin to Alaska grapple
with a years-long funk in milk prices and costs continue to climb.
Consumers have been slowly moving away from milk for years, though
overall milk production has steadily climbed, leaving the industry
more reliant on exports -- which have been challenged by US trade
disputes. The USDA estimates 37,468 licensed dairy herds in the US
at the end of 2018, with nearly 600 closing in Wisconsin, about 300
in New York, and Alaska going from two down to one.
(jacob.bunge@wsj.com; @jacobbunge)
UK Food and Drink Federation Slams No-Deal Brexit Tariffs --
Market Talk
1159 GMT - U.K.'s Food and Drink Federation chief executive Ian
Wright criticized the government's long-awaited tariff regime under
hard Brexit as "disgraceful" and indicative that the U.K. isn't
ready to leave the EU in March 29. The government announced tariffs
will be cut to zero on 87% of imports to the country, but prices of
some imports, including cars, will go up. The plans also include
some new tariffs and quotas. "There must be proper consultation
with business before a change of this magnitude is introduced," he
says, adding that the plan is confusing and complex and likely to
result in massive trade distortions. "Many food and drink
manufacturers who trade with the EU will surely question whether
the U.K. is the right place for them to be," he
warns.(lorena.ruibal@wsj.com; @lorena_rbal)
STORIES OF INTEREST
Ag Market Perplexed by Unusual Shorting Activity -- Market
Talk
12:11 ET - The amount of short positions held on the CBOT by
investment funds is puzzling grains traders, who say that normally
this close to the next planting season markets are not this
bearish. According to the latest CFTC data managed money funds are
short in corn, soybeans and wheat. The only other time funds took a
net short position in either corn or soybeans at this time of year
was 2016, according to commitment of traders data examined dating
back to 2010. The reasons are not clear. "My best guess, at this
time, is that investment funds are using this as a hedge against
stock positions in the event that a trade deal blows up and we go
back to tariffs," says Brian Grossman of Zaner Group.
(kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Futures Take a Break from Sharp Movements -- Market
Talk
15:31 ET - Both live cattle and lean hog futures on the CME had
a respite from the volatility seen with both prices this week, with
April live cattle futures virtually unchanged at $1.26675 per pound
and April hog futures down 0.3% to 63.475 cents per pound. For
hogs, the drop today puts an end to a three-day rally, while for
cattle the nominal move does nothing to recover prices from
yesterday's 1.8% drop. Such a recovery may not come for awhile,
amid reports of cattle supply appearing to become more available.
The supply of cattle on feed remains above year ago levels, which
should bolster supplies in the near term," says Steiner Consulting
Group. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Mar 13
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Mar 13 +$ 26.04 +$ 9.49
Mar 12 +$ 37.21 +$ 1.81
Mar 11 +$ 30.77 +$ 7.55
* 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 102.0
(Percent of Year-Ago) Select 101.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose 2 cents per
hundred pounds, to $228.24, according to the USDA. Select-grade
prices fell $1.07 per hundred pounds, to $219.28. The total load
count was 118. Wholesale pork prices rose 25 cents, to $66.15 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
March 13, 2019 17:32 ET (21:32 GMT)
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