Continue Reading Below
JBS Sells Beef Operations in Argentina, Paraguay and Uruguay -- Update
SAO PAULO -- Brazilian meatpacker JBS SA said early Tuesday it agreed to sell its beef operations in Argentina, Paraguay and Uruguay for $300 million. The world's biggest beef company, which has become entangled in Brazil's largest corruption scandal, will sell its stakes in the beef operations in the three countries to Pul Argentina SA, Frigomerc SA and Pulsa SA for a total of $300 million, subject to some adjustment, JBS said. The buyers are all controlled by rival Brazilian meatpacker Minerva SA.
Kentucky Supplier Recalls More Than 22,000 Pounds of Beef
LOUISVILLE, Ky. -- The U.S. Department of Agriculture says a Kentucky-based food distributor has issued a recall on more than 22,000 pounds of ground beef and other beef products due to possible E. coli bacteria contamination. USDA's Food Safety and Inspection Service says the Creation Gardens Inc. products subject to the recall were shipped to food service locations in Indiana, Kentucky, Ohio and Tennessee.
STORIES OF INTEREST
Continue Reading Below
U.S. Treasury Secretary Mnuchin: China Bilateral Investment Treaty 'On Our Agenda'
WASHINGTON -- The Trump administration plans on reviving talks toward a bilateral investment treaty that would give U.S. firms broader access to the Chinese market, but only after Washington makes progress on other trade issues, U.S. Treasury Secretary Steven Mnuchin said Tuesday. The Obama administration said it had been close to completing a yearslong negotiation with Beijing on a Bilateral Investment Treaty, but the Trump administration's focus on ramping up exports to China, rather than U.S. investment in the world's second largest economy, had quashed hopes among U.S. business advocates of the so-called BIT for a deal any time soon.
Demand Mixed in Brazil for Farm Equipment -- Market Talk
12:50 ET - Demand for farm machinery in Brazil was mixed in May, suggesting surging equipment sales may loosen momentum amid a weakening farm economy. Factory shipments of tractors rose 22% in May from a year earlier, says data from a Brazilian trade association. But shipments of grain harvesting combines dropped 21%. Strong demand from Brazil this year has helped Deere (DE), CNH Industrial (CNHI) and AGCO offset slumping sales in the US. But JP Morgan warns the good times in Brazil may not last. "The fundamentals for major crops in the region have deteriorated and are unlikely to support a rebound in equipment demand," JPM says in a note to investors. "Soybean farmers are barely profitable today despite record production" and there's the risk of "government subsidized financing packages [for equipment purchases] shrinking in 2H." (email@example.com; @bob_tita)
U.S., Mexico Announce Agreement in Principle on Sugar Deal -- 2nd Update
WASHINGTON -- The U.S. and Mexican governments announced an "agreement in principle" Tuesday designed to avert a trade war over sugar, helping to set the course for bigger talks on rewriting the North American Free Trade Agreement. The preliminary pact imposes new limits on Mexican imports to the U.S., and appears to provide longer-term clarity to a market that has been overshadowed for three years by cross-border tensions and prospects of tit-for-tat sanctions over sweeteners from each country.
Feeder Cattle Futures Fall to Lower Limit, Reversing Course
CHICAGO--Cattle futures fell Tuesday, doing a U-turn after testing seasonal highs at the opening. Feeder cattle futures touched a fresh year high and live cattle futures climbed just short of their early May peak, but the contracts went south late in Tuesday's session. Analysts said they were overbought after a recent rally sparked by high beef prices, lower cattle weights and wide meat-packer margins.
Zumbrota, Minn Hog Steady At $46.00 - Jun 6
Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $46.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are $37.00-$39.00, 400-450 pounds are at $37.00-$39.00, 450-500 pounds are $37.00-$39.00 and those over 500 pounds are $41.00-$43.00.
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 - Jun 6
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 -
Jun 6 +$22.23 +$ 62.21
Jun 5 +$26.42 +$ 64.47
Jun 2 +$30.79 +$ 65.27
* 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 112.5
(Percent of Year-Ago) Select 110.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose $2.10 per hundred pounds, to $250.45, according to the USDA. Select-grade prices rose 13 cents per hundred pounds, to $219.57. The total load count was 201. Wholesale pork prices fell $1.05, to $89.34 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 06, 2017 17:29 ET (21:29 GMT)