LIVESTOCK HIGHLIGHTS: Top Stories of the Day

Features Dow Jones Newswires

TOP STORIES

Continue Reading Below

Canada Cancels EU Beef Complaint

WINNIPEG--The Canadian government announced today that it is canceling its World Trade Organization challenge of the European Union's added-hormone ban in beef production.

But the cancellation was little more than a formality in light of new trade rules under Canada's agreement with the EU. Under the Comprehensive Economic and Trade Agreement, Canada has given up the right to follow through on its complaint in the 21-year-old dispute.

No Cause for Alarm Seen in Latest Dairy Result -- Market Talk

2014 GMT - While dairy prices fell 2.4% at the latest global auction despite futures pointing to decent gains, ASB says it remains comfortable with their 2017/18 milk price forecast of $6.75 per kilogram of milk solids. "Volumes sold at the event were the highest in over a year," they say. ASB is keeping an eye on the wet New Zealand spring, which has been saturating most of the country including the key dairy regions. As long as the wet spring weather continues and hurts production, it could see prices move higher over coming months, the bank says. (ben.collins@wsj.com)

Continue Reading Below

STORIES OF INTEREST

Federal Farm Payments to Top $9.6B, USDA Says -- Market Talk

16:00 ET - U.S. farmers will receive more than $9.6B in federal funds this year as part of government safety-net and conservation programs. Bumper harvests at home and abroad have conspired to push down crop prices in recent years, spurring a prolonged slump in the farm sector. Falling commodity prices and farm revenues will trigger a roughly $8B payout for the 2016 crop year, the USDA says, with many such payments heading to landowners and farmers in regions recently hit by drought and hurricanes. Payments to farmers who agreed not to raise crops on sensitive land this year in order to improve environmental conditions will total $1.6B, according to the government. (jesse.newman@wsj.com; @jessenewman13)

Wheat Futures Climb on Bargain Hunting

Wheat futures rose Tuesday, rebounding after several days of losses.

Prices for the grain fell after the U.S. Department of Agriculture said on Friday that U.S. farmers produced more of the grain than expected, with the spring wheat harvest in particular beating pre-report estimates.

Analysts Weigh Costs, Benefits of New Monsanto Seeds -- Market Talk

9:48 ET - Analysts are trying to determine whether Monsanto will come out in the black on its big roll-out this year of new genetically engineered soybeans, resistant to the herbicide dicamba. Bernstein analysts highlight in a research note Monsanto's highly successful launch -- farmers used the soybeans and spray on about 20M acres this year -- but the herbicide has been blamed for more than 3M acres of damaged crops. If soybean yields decline 10% as a result, Bernstein figures, Monsanto and other companies selling the seeds and spray like BASF and DowDuPont could face liabilities of around $143M. That compares to the roughly $98M Monsanto and DowDuPont likely earned on the seeds, according to the analysts. Farmers have sued seed and chemical companies over the alleged damage, and Monsanto execs are likely to take questions on the matter on a Wednesday earnings call. (jacob.bunge@wsj.com; @jacobbunge)

FUTURES MARKETS

Hog Futures Touch Upper Limit

Hog futures jumped more than 4% on Tuesday, extending a recent rally as traders bet the market was reaching a seasonal low.

Both cash prices for slaughter-ready hogs and wholesale pork prices have steadied recently after weeks of heavy losses, which dragged futures lower. Cash prices rose 87 cents to $48.61 per 100 pounds on Monday while pork prices rose 34 cents to $73.12 per 100 pounds on Tuesday.

CASH MARKETS

Zumbrota, Minn Hog Steady At $30.00 - Oct 3

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $30.00 per hundredweight. Sow prices are steady. Sows weighing under 450 pounds are $21.00-$23.00, 400-450 pounds are at $21.00-$23.00, 450-500 pounds are $21.00-$23.00 and those over 500 pounds are $25.00-$27.00.

The day's total run is estimated at 200 head.

Prices are provided by the Central Livestock Association.

Estimated U.S. Pork Packer Margin Index - Oct 3

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

*

Oct 3 +$40.40 +$ 24.68

Oct 2 +$43.90 +$ 25.64

Sep 29 +$47.73 +$ 26.50

* 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 105.6

(Percent of Year-Ago) Select 106.3

USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Tuesday rose 65 cents per hundred pounds, to $197.87, according to the USDA. Select-grade prices rose 74 cents per hundred pounds, to $189.02. The total load count was 114. Wholesale pork prices fell 45 cents, to $71.88 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

October 03, 2017 17:25 ET (21:25 GMT)