LIVESTOCK HIGHLIGHTS: Top Stories of the Day
UK Meat Exporters' Trade May Halve Amid Brexit Chaos -- Market
1541 GMT - U.K. meat exporters could lose up to half their trade
as a result of chaos caused by the U.K.'s departure from the EU,
industry chiefs say. Companies are reporting systemic difficulties
in exporting to the EU from outside its single market, mountains of
red tape and a potential permanent loss of trade of between
20%-50%, the British Meat Processors Association says. Dismissing
trade disruption at borders as simply short-term 'teething
problems' is no longer credible, the trade group says. "Export
hurdles we face are now in plain sight and aren't going away," BMPA
chief executive Nick Allen says. "We need government to urgently
re-engage with both the industry and the EU to work out detailed,
lasting solutions." (firstname.lastname@example.org)
Decline in US Hogs Pressures Feed Grains -- Market Talk
0923 ET - The inventory of US hogs fell 2% to 74.8 million head
through March 1, according to the USDA's latest hogs and pigs
report released late yesterday. While expected to help hog futures
trading on the CME rise today, the news is less positive for grains
traders -- who were hoping that a rise in hogs to feed would
support increased consumption of feed grains. "[It's] perceived
bearish for feed prices," says Terry Reilly of Futures
International. Along with row crop futures, soymeal futures on the
CBOT are down in pre-market trading -- with the most-active
contract down 0.7% to $401.80 per ton. (email@example.com;
STORIES OF INTEREST
Analysts Forecast Uptick in Corn Planted Acreage -- Market
11:19 ET - US farmers are expected to plant more corn acres than
forecast by the USDA in February. According to analysts surveyed by
WSJ, farmers are expected to plant 93.1M acres of corn, up from 92M
acres previously forecast by the USDA. Meanwhile, farmers are
forecast to plant just below 90M acres of soybeans, roughly
unchanged from the USDA's previous estimates, and 45.2M acres of
wheat, slightly higher than the USDA's February forecast. Higher
acreage may pressure CBOT grain futures, as more supply on the
ground may ease indications of tight supply in the US.
Unilever Seen With Diffidence by Market -- Market Talk
0918 GMT - Consumer-goods giant Unilever is struggling to keep
up with expectations, according to Jefferies. Unilever needs to
find a path to reach an organic sales growth greater than 4% on the
year to rebuild the market's confidence in the company, the U.S.
bank says. However, reaching that target looks increasingly elusive
this year, it says. Jefferies has a buy rating on the stock and a
target price of 4,550 pence. Shares are down 0.3% at 4,047 pence.
China Modern Dairy Operating Cash Flow Likely Supported by Raw
Milk Prices -- Market Talk
0542 GMT - China Modern Dairy's operating cash flow could rise
over 2021-2023, helped by recovering raw milk prices, Daiwa Capital
says; the dairy company expects to generate more than CNY1 billion
in operating cash flow per annum, it says. Daiwa notes that China
Modern Dairy recently raised CNY1.3 billion through a new share
issue, which may satisfy over 60% of its capex needs over
2021-2025. The Japanese bank raises its forecast for China Modern
Dairy's revenue by 2%-35% and for EPS by 7%-15% over 2021-2022,
citing support from increases in its herd size. Daiwa maintains a
buy rating and raises its target price to HK$3.20 from HK$2.81.
Shares are up 8.1% at HK$2.01.(firstname.lastname@example.org)
Livestock Finishes Higher on Covid Reopening Hopes -- Market
1548 ET - The reopening of the US economy as Covid-19
vaccinations proliferate across America helped support livestock
futures on the CME Friday. Live cattle futures close up 0.6% to
$1.21775 per pound while lean hog futures finish with a gain of
2.2% to $1.056 per pound. "Pork production this year will fall
short of 2020 levels in a year when export demand is expected to
remain solid, while the opening of America's economy is expected to
increase demand," says Arlan Suderman of StoneX. "That's supporting
the beef markets as well." (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Mar 26
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Mar 26 +$ 14.45 +$ 94.70
Mar 25 +$ 22.15 +$ 98.10
Mar 24 +$ 26.85 +$100.83
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 93.1
(Percent of Year-Ago) Select 93.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday rose $1.21 per hundred
pounds, to $237.66, according to the USDA. Select-grade prices rose
$1.52 per hundred pounds, to $227.77. The total load count was 84.
Wholesale pork prices fell $1.58, to $106.45 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
March 26, 2021 17:22 ET (21:22 GMT)
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