TOP STORIES

Saudi Arabia Halts Imports From 5 Brazilian Chicken Plants -- Market Talk

14:08 ET - Saudi Arabia has halted imports from five Brazilian chicken processing plants due to technical problems at the plants, according to the Brazilian Association of Animal Protein, or ABPA. Saudi Arabia is the single biggest importer of chickens from Brazil, buying about 12% of Brazil's chicken exports last year. The owners of the plants need to take measures to correct the technical problems before they'll be able to export to Saudi Arabia again, an ABPA spokesman said. Saudi Arabia revoked export authorization for 33 Brazilian chicken plants, but of those, only five actually export chickens at the moment, while another 25 Brazilian chicken plants can still sell to the Middle Eastern country, the ABPA said. (jeffrey.lewis@wsj.com)

STORIES OF INTEREST

Bunge Profit Warning Sets Lower Bar for 2019 -- Market Talk

16:23 ET - Bunge's announcement that full-year 2018 profits will come in below the company's forecasted range prompts JPMorgan analysts to cut their own forecasts for the agricultural company's 2019 and 2020 results, but the firm sees a silver lining for the beleaguered crop-trading house. "These preliminary results establish a relatively low bar for earnings growth and more positive news flow in 2019," JPMorgan analysts write. JPMorgan remains neutral-rated on the shares, though, as agricultural markets remain tough for crop traders and "strategic actions," being evaluated by a new special committee of the board, may take time. Bunge shares settle 2% lower, versus a 1.4% decline in the S&P 500. (jacob.bunge@wsj.com; @jacobbunge)

USDA to Reopen All FSA Offices This Week -- Market Talk

15:42 ET - Secretary of Agriculture Sonny Perdue confirmed this afternoon that the USDA would be reopening all Farm Service Agency offices nationwide--and that the deadline for farmers to apply to the Market Facilitation Program for financial aid to counteract losses due to tariffs has been extended to February 14 from a previous date of January 15. "At President Trump's direction, we have been working to alleviate the effects of the lapse in federal funding as best we can, and we are happy to announce the reopening of FSA offices for certain services," says Perdue. The USDA will keep FSA offices open five days per week during business hours beginning January 24--with the schedule being reduced to three days per week after two weeks unless the shutdown is resolved. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS

Livestock Futures Finish Lower Today -- Market Talk

14:49 ET - Both live cattle and lean hog futures finished trading lower today, with live cattle futures finishing down 1% while lean hog futures finished 0.3% down. Analyst estimates compiled by WSJ show that the cattle market expects supply growth to exceed demand growth in the past month. However, a winter storm hitting some parts of the Midwest could prove to drive cattle futures up in the short term. Meanwhile, pork futures continue to be weak with demand for pork products remaining steady. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Jan 22 
 
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 
Jan 22       +$ 29.24            +$ 14.50 
Jan 21       +$ 30.77            +$ 16.58 
Jan 18       +$ 28.85            +$ 14.43 
 
* 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  105.5 
      (Percent of Year-Ago)     Select  106.1 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday rose $1.08 per hundred pounds, to $216.34, according to the USDA. Select-grade prices rose 86 cents per hundred pounds, to $211.72. The total load count was 94. Wholesale pork prices fell 97 cents, to $68.48 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

January 22, 2019 17:28 ET (22:28 GMT)