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Hurricane Harvey Threatens Texas Cattle -- Market Talk
12:25 ET - Some cattle herds in southeastern Texas are at risk from torrential rainfall after Hurricane Harvey. Bill Hyman, president of the Independent Cattlemen's Association of Texas, says that as many of half of the state's ranchers were affected by remnants of the hurricane. They had time to prepare, he says, moving their livestock to higher ground ahead of the storm, but those west of Houston are particularly vulnerable to flooding. "No one anticipated the amount of rain that we're going to get," Hyman says. "We're going to lose some cattle." As it stands, analysts don't expect disruption to national cattle supply, though traders are monitoring for developments. (firstname.lastname@example.org; @b_parkyn)
Brazil's JBS Board Wants Wesley Batista to Remain CEO -- Market Talk
11:40 ET - The board of directors of Brazil's giant meatpacker JBS supports keeping businessman Wesley Batista as CEO in spite of calls for his removal. As part of a plea agreement, Batista and his brother Joesley have told prosecutors they bribed politicians for several years in exchange for favors, including easier access to cheaper financing. JBS's number 2 shareholder, Brazilian National Development Bank or BNDES, wants JBS to sue Batista for losses "caused to its patrimony as a result of the illicit acts". It will also seek, as part of the proposed lawsuit, to ban Batista and other executives from JBS's management. JBS's board responded to BNDES Monday, saying legal action against Batista would be premature, as there is no concrete proof that Batista's actions caused losses. (Luciana.Magalhaes@wsj.com)
STORIES OF INTEREST
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Amazon Brings New Playbook to Grocery -- Market Talk
8:07 ET - Amazon (AMZN) doesn't need to make money from its new Whole Foods Market grocery division yet, but food sales are crucial for traditional players like Kroger (KR), Wal-Mart (WMT) and Target (TGT). Supermarkets' success has mainly relied on getting customers into conveniently located stores with deals. By cutting prices on high-volume staples like bananas, eggs and ground beef in 470 Whole Foods stores, Amazon is signaling it will compete for that traffic. (email@example.com; @heatherhaddon)
Grain, Soybeans Fall on Large Supplies; Harvey Concerns Muted
Grain and soybean futures started the week lower on large harvest forecasts, while traders watched for signs that Tropical Storm Harvey could hamper U.S. crop supply. Prices fell on Monday after advisory firm Pro Farmer forecast last week another large U.S. corn and soybean harvest, with soybean production at 4.33 billion bushels and corn at 13.95 billion bushels this year. Meanwhile, rising wheat production estimates from Russia added to the pressure.
Cattle Futures Climb on Slower Placements
Cattle futures started the week higher as traders reacted to a government report last week suggesting cattle supply would moderate in the months to come. The U.S. Department of Agriculture said on Friday that feedlot operators placed 1.6 million head of cattle in commercial yards in July, up 3% from a year earlier. That was below expectations and much slower than recent months. A drought in the Dakotas this summer contributed to a 16% rise in placements in June from a year earlier as ranchers offloaded cattle.
Zumbrota, Minn Hog $4.00 Lower At $42.00 - Aug 28
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are $4.00 lower at $42.00 per hundredweight.
Sow prices are $1.00-$2.00 lower. Sows weighing under 450 pounds are $47.00-$49.00,
400-450 pounds are at $47.00-$49.00, 450-500 pounds are $47.00-$49.00 and
those over 500 pounds are $51.00-$53.00.
The day's total run is estimated at 125 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Aug 28
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 28 +$36.92 +$ 53.98
Aug 25 +$35.63 +$ 54.93
Aug 24 +$34.06 +$ 55.83
* 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 95.6
(Percent of Year-Ago) Select 97.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose 18 cents per hundred pounds, to $191.50, according to the USDA. Select-grade prices rose 32 cents per hundred pounds, to $188.62. The total load count was 130. Wholesale pork prices fell 44 cents, to $85.51 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 28, 2017 17:22 ET (21:22 GMT)