LIVESTOCK HIGHLIGHTS: Top Stories of the Day
January 11 2019 - 5:46PM
Dow Jones News
TOP STORIES
Ham Prices May Recover After Steep Drop Last Year -- Market
Talk
09:25 ET - The average price for wholesale ham in the US, 46
cents per pound, is 21% lower than at the same time last year,
which is largely in reaction to the retaliatory 20% tariff levied
on US pork by Mexico in 2018, according to Steiner Consulting.
However, this trend of dropping prices, which has coincided with
rising exports, may soon end -- as a USMCA trade agreement will
likely result in Mexico dropping the tariff and China's battle with
African Swine fever will likely push them to buy more pork imports.
"We are a little more bullish for price in 2019," says Altin Kalo
of Steiner Consulting. (kirk.maltais@wsj.com, @kirkmaltais)
Shutdown Hurting Food Stamp Business for Grocers -- Market
Talk
12:22 ET - The federal shutdown has left grocers unable to renew
their food stamp licenses and unable to acquire new ones, according
to the National Grocers Association. "The partial government
shutdown has had serious effects on the Supplemental Nutrition
Assistance Program and the independent grocery industry," the trade
group wrote to members. The government instructed states to load
food stamp benefits to participants by Jan. 20, but currently won't
put additional cash loaded on cards next month. "The government
shutdown is having significant impact on your stores and the
customers you serve," wrote Independent Grocers Alliance CEO John
Ross to members. (heather.haddon@wsj.com; @heatherhaddon)
STORIES OF INTEREST
Food Prices Rise, But Lower Gas Costs Offers Relief -- Market
Talk
08:43 ET - Food prices increased a seasonally adjusted 0.4% in
December from November, according to the Labor Department's
consumer-price index. That was the strongest month-over-month
increase since May 2014. Still, American consumers got relief from
higher food costs in the form of a sharp 7.5% drop in gasoline
prices last month, the biggest monthly decrease since February
2016. Overall consumer prices declined 0.1% in December.
(harriet.torry@wsj.com; @HarrietTorry)
AB Foods Hoping for a Good Primark Christmas -- Market Talk
1555 GMT - Investors in Associated British Foods will be hoping
that Primark had a good Christmas when the food producer and
fashion retailer reports first-quarter trading on Thursday Jan. 17.
A.J. Bell notes that in December, ABF said Primark had faced a
tough November, though it stuck by its forecast that profits would
increase for the year to September 2019 thanks to careful stock
control and higher margins. Analysts will be looking for constant
currency sales growth at Primark and the role played by store
expansion. (philip.waller@wsj.com)
FUTURES MARKETS
Hogs Close Down, Cattle Nudges Up -- Market Talk
15:01 ET - Lean hog futures for February close trading down
2.2%, at 62.65 cents a pound. With Friday's close, hog futures
erased most of their gains from the past two days amid concerns
about traders' inability to accurately assess the hog market while
the government is shut down. Meanwhile, live cattle futures for
February barely stayed afloat, closing up 0.1% for the day, at
$1.24975 a pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jan 11
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Jan 11 +$ 36.25 +$ 17.66
Jan 10 +$ 32.64 +$ 16.13
Jan 9 +$ 28.98 +$ 13.34
* 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 101.6
(Percent of Year-Ago) Select 101.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell $1.50 per hundred
pounds, to $212.46, according to the USDA. Select-grade prices fell
$1.50 per hundred pounds, to $206.27. The total load count was 107.
Wholesale pork prices rose 71 cents, to $69.95 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
January 11, 2019 17:31 ET (22:31 GMT)
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