LIVESTOCK HIGHLIGHTS: Top Stories of the Day

06/24/2020 | 04:33pm



USDA Says 'No Evidence' That Food Exports Can Transmit Covid-19 -- Market Talk

1554 ET - Coronavirus cannot be transmitted via food or the packaging the food comes in, the USDA and FDA says in a joint statement Wednesday. "Efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission," says US Secretary of Agriculture Sonny Perdue and FDA Commissioner Stephen M. Hahn, M.D. in a joint statement. "There is no evidence that people can contract COVID-19 from food or from food packaging." Earlier this week, Chinese authorities suspended chicken imports from a Tyson Foods facility in Arkansas due to what Chinese officials said were Covid-19 infections among the plant's employees. (; @kirkmaltais)


Tariffs on European Food Could Expand Under New U.S. Proposal -- Update

The Trump administration is considering expanding and raising tariffs on $7.5 billion of imports from the European Union and U.K. that it first imposed last year, part of a long-running dispute at the World Trade Organization that faults European countries for subsidies to aircraft manufacturer Airbus SE.

The Office of the U.S. Trade Representative filed paperwork late Tuesday that would allow companies to comment on a proposed increase to as high as 100% on all goods already tariffed and broaden the list to tariffs on new items such as certain coffees and olives.


Plant-Based Meat Still Needs Price Parity -- Market Talk

12:14 ET - Fast-food chains are luring new customers thanks to plant-based meat offerings, but the products' share of the restaurants' revenue remains small, BTIG says, after a call with a major operator of fast-food franchises. The brokerage firm predicts expansion will pick up as Beyond Meat burgers and sausages get closer in price to traditional beef. A recent rise in beef prices could help, as will projected gains in scale. BTIG adds that plant-based chicken products could arrive by year end and give a boost to sales. Beyond Meat slides 2%. (; @ptrevisani)




Coronavirus Concerns Upending Shake Shack's Kitchens -- Market Talk

12:28 ET - Shake Shack says it's trying to incorporate social distancing in its kitchens, and the need to allow for more space between workers is making the burger chain rethink their designs going forward. "The kitchens are tight places, that is a fact. There are many jobs in America where that is the fact right now. We're doing our best to keep our team safe," CEO Randy Garutti says at a consumer conference. The New York City-based chain is reevaluating its kitchens in future designs and taking some labor-intensive items off its menus for now. Shares sink 6.8%. (; @heatherhaddon)


Soybean Prices Rally as China Ramps Up Buying

China has ramped up its purchases of U.S. soybeans recently, sparking a rebound in prices and making the crop profitable again for U.S. farmers after the coronavirus pandemic had slammed demand.

Since falling to their lowest levels in nearly a year in April, soybean futures on the Chicago Board of Trade have risen 6.4%. Most-active soybean futures closed at $8.71 a bushel on Wednesday -- topping the break-even price of roughly $8.50 a bushel needed by farmers for their soybean crops to be profitable. Some traders believe the current momentum could push soybean prices to over $10 a bushel, which would be their highest level in over a year.




Livestock Futures Finish Lower -- Market Talk

15:35 ET - A rally in livestock futures on Tuesday did not extend into Wednesday - with live cattle futures on the CME finishing down 0.9% to 96.35 cents per pound, while lean hog futures finished 2.4% lower at 51.25 cents per pound. For hogs, that makes it 19% that futures have fallen since a recovery from coronavirus woes peaked in early May. "Lean hog futures continue to feel the pressure of large production numbers amid soft domestic demand, which is playing out as lower product, and therefore lower formula prices," says Arlan Suderman of StoneX. (; @kirkmaltais)



Estimated U.S. Pork Packer Margin Index - Jun 24 
All figures are on a per-head basis. 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
Jun 24       +$ 77.94            +$ 11.51 
Jun 23       +$ 67.12            +$  1.10 
Jun 22       +$ 73.44            +$  5.34 
* 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. 
This report compares the USDA's latest beef carcass composite 
values as a percentage of their respective year-ago prices. 
          For Today              Choice   95.5 
      (Percent of Year-Ago)      Select  101.4 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Wednesday fell $2.12 per hundred pounds, to $209.69, according to the USDA. Select-grade prices fell $1.88 per hundred pounds, to $201.69. The total load count was 196. Wholesale pork prices rose $4.84, to $67.09 a hundred pounds, based on Omaha, Neb., price quotes.

Copier lien
Latest news about "Commodities"
1d ago
1d ago
1d ago
1d ago
1d ago