LIVESTOCK HIGHLIGHTS: Top Stories of the Day

Features Dow Jones Newswires

TOP STORIES

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Chipotle Norovirus Incident Could Have Long-Lasting Effect -- Market Talk

16:43 ET - Chipotle's (CMG) recovery from a July norovirus outbreak at a restaurant in Virginia could take a year, BTIG says after meeting with CMG management. The chain said sales in the first two weeks of July, before the outbreak, were up 3% to 4% but dropped to the negative low-single digits immediately after. CMG told BTIG that after previous food-safety incidents, the chain was able to recover half the lost sales within a few weeks of declaring an outbreak to be over but that it usually takes another year to recover the remaining half of lost sales. (julie.jargon@wsj.com)

JBS CEO May Oppose Calls to Step Down in Brazil

SAO PAULO -- The chief executive of Brazilian meat giant JBS SA signaled Tuesday he may resist calls to step down even after admitting to participating in a multimillion-dollar scheme to bribe politicians and government officials.

In JBS's first conference call since the corruption scandal erupted in May, JBS CEO Wesley Batista presented investors with an optimistic plan to reduce debt and issue shares in the U.S. next year. Little mention was made of a plea deal in which Mr. Batista and his brother, former JBS Chairman Joesley Batista, told prosecutors they bribed nearly 2,000 Brazilian politicians while growing their company into the world's biggest meatpacker.

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STORIES OF INTEREST

Corn Futures Sink to Multimonth Low on Better Crop Conditions

Corn futures fell to a five-month low after wetter forecasts and an unexpected improvement in U.S. crop conditions. Soybean and wheat contracts also dropped.

Rainy weather in the Midwest this week is expected to significantly improve moisture in corn and soybean growing states like Iowa, said MDA Weather Services. Concerns about dryness and crop stress in the western Corn Belt in recent weeks prompted some rallies in the futures market.

Sugar, Cocoa, Coffee Slip on Weak Demand, Currency Moves -- Market Talk

12:13 ET - Soft commodities are down across the board. Sugar is down 2.15% at 13.22 cents a pound, London cocoa is down 2.28% at GBP1,459 a ton, and New York arabica coffee is down 3.36% at $1.32 a pound. A lack of bullish news combines with a stronger dollar to drag prices lower. A lack of bullish news and bearish trader positioning -- revealed in data put out Monday -- are both hurting coffee prices. As for sugar, traders are re-focusing on lacklustre fundamendals after a speculative and currency driven rally during July. Sugar may have found its floor for the moment thanks to rains invading southern Brazil which may potentially dilute the sucrose content of the cane according to The PRICE Futures Group's Jack Scoville. (david.hodari@wsj.com; @davidhodari)

FUTURES MARKETS

Livestock Futures Pop After Sluggish Start to Week

Livestock futures bounced, reversing course after starting the week lower.

Most-active October live cattle futures rose 2.3% to $1.0905 a pound, nearing the top of their daily trading band late in Tuesday's session.

CASH MARKETS

Zumbrota, Minn Hog Steady At $50.00 - Aug 15

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $50.00 per hundredweight.

Sow prices are steady. Sows weighing under 450 pounds are $60.00-$62.00, 400-450 pounds are at $60.00-$62.00, 450-500 pounds are $60.00-$62.00 and those over 500 pounds are $64.00-$66.00.

The day's total run is estimated at 250 head.

Prices are provided by the Central Livestock Association.

Estimated U.S. Pork Packer Margin Index - Aug 15

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

*

Aug 15 +$29.07 +$ 71.12

Aug 14 +$28.06 +$ 71.35

Aug 11 +$28.01 +$ 71.50

* 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 98.9

(Percent of Year-Ago) Select 101.2

USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Tuesday rose 3 cents per hundred pounds, to $198.95, according to the USDA. Select-grade prices fell 57 cents per hundred pounds, to $195.87. The total load count was 120. Wholesale pork prices fell 11 cents, to $93.48 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

August 15, 2017 17:56 ET (21:56 GMT)