TOP STORIES

 
December Cattle Slaughter Highest Since 2010 -- Market Talk 

11:18 ET - Cattle-slaughter statistics for the week ended Saturday show it was the highest December cattle-slaughter week since 2010, as well as the second-highest slaughter week this year. Total cattle slaughter for the week was estimated at 667,000 heads, 4.3% higher than the same time last year. According to Dennis Smith of Archer Financial, beef prices remain steady despite the higher slaughter figure, indicating better-than-expected demand. "The kill was huge, the second largest of the entire year, yet most beef cuts are being offered at steady money today," Smith says. (kirk.maltais@wsj.com; @kirkmaltais)

 
Grain Futures Fall as Market Looks for Clarity in Crop Reports 

Wheat contracts for March delivery fell 1.1% to $5.25 1/4 a bushel at the Chicago Board of Trade Friday. January soybean contracts also fell 0.8% to $9.09 3/4 a bushel. The spread of African swine fever among pigs in Asia and abroad could prove to be a factor moving soybean demand estimates in Tuesday's WASDE reports.

STORIES OF INTEREST

 
Wall Street Is Underestimating Labor-Cost Pressures -- Market Talk 

12:07 ET - Research firm Gordon Haskett thinks estimates for labor costs at about two-thirds of the largest restaurant companies are "extremely aggressive." Wall Street projects labor costs will be 32.2% of sales next year, up from a projected 32% this year, according to the company. But an increase of that amount is unlikely, "given the accelerating wage rate inflation levels that virtually every company in the restaurant sector is facing," the firm says. State-level minimum-wage hikes, low unemployment rates and fact that most companies have already implemented cost-savings initiatives will pressure costs, Gordon Haskett says. The companies most exposed to higher wages are Habit Restaurants, Del Taco, BJ's, Red Robin and Noodles & Co, it adds. (micah.maidenberg@wsj.com, @MicahMaidenberg)

FUTURES MARKETS

 
Livestock Futures End Lower -- Market Talk 

15:12 ET - Hog futures approach seasonal lows as CME lean hog contracts for February delivery fall 1.6%, while live cattle contracts end 0.3% lower. "In 2019, we will have record large supplies (of pork)," says Don Roose, president of US Commodities. "So the market desperately needs an increase in exports ... whether that's from China or through a third party or from a new location." Meanwhile, African swine fever continues to spread in China, which some analysts think will lead to increased foreign demand coming to US producers. (francesca.fontana@wsj.com; @francescamarief)

 
Grain Futures Fall as Market Looks for Clarity in Crop Reports 

Wheat contracts for March delivery fell 1.1% to $5.25 1/4 a bushel at the Chicago Board of Trade Friday. January soybean contracts fell 0.8% to $9.09 3/4 a bushel. The spread of African swine fever among pigs in Asia and abroad could prove to be a factor moving soybean demand estimates in Tuesday's WASDE reports.

CASH MARKETS

 
Zumbrota, Minn, Hog Market Not Established - Dec 10 
 
  Barrow and gilt prices at the Zumbrota, Minn., livestock market are 
not established. Thursday, December 6, Barrow and gilt prices were 
$33.00 per hundredweight. 
 
  Sow prices are $1.00-$3.00 higher. Sows weighing 400-450 pounds are 
at $29.00-$30.00, 450-500 pounds are $29.00-$30.00 and those over 500 
pounds are at $32.00-$33.00. 
 
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 - Dec 10 
 
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 
 
Dec 10       +$ 48.03            +$ 20.30 
Dec 07       +$ 47.73            +$ 21.79 
Dec 06       +$ 44.68            +$ 18.48 
 
* 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  104.8 
      (Percent of Year-Ago)     Select  108.2 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Monday rose $1.13 per hundred pounds, to $215.42, according to the USDA. Select-grade prices rose 44 cents per hundred pounds, to $200.94. The total load count was 105. Wholesale pork prices fell 69 cents, to $71.18 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

December 10, 2018 17:30 ET (22:30 GMT)