LIVESTOCK HIGHLIGHTS: Top Stories of the Day

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Brazil's Batista Family Appeals Against Asset Freeze -- Market Talk

15:15 ET - J&F Investimentos, the parent company of giant meatpacker JBS SA, says it's appealing a decision from a federal court which has frozen the assets of its owners, the Batista family. J&F's lawyers say the freeze is legally fragile because it was based on media reports and not on documents. Brothers Wesley and Joesley Batista, former chief executive officer and former chairman of JBS, respectively, were arrested last month in Brazil. Authorities allege that the brothers engaged in insider trading, profiting from advance knowledge of a plea deal earlier this year in which they admitted to bribing nearly 2,000 Brazilian politicians. Both brothers deny wrongdoing related to the insider-trading investigation. (luciana.magalhaes@wsj.com)

Costco Shares Slip Despite Strong Sales -- Market Talk

11:57 ET - Costco shares drop 6% despite reporting a 6.1% rise in existing store sales for its fiscal 4Q Thursday evening, a strong performance in a competitive retail environment. Costco can't seem to escape investor fears over its ability to fend of Amazon in the wake of its Whole Foods acquisitions. Questions remain among investors about the need for price investments that ate into gross margins in the most recent quarter, membership growth and ecommerce plans, say analysts. Though many are scratching their head about why COST's generally strong performance isn't calming investor fears. "We continue to believe COST is well insulated from Amazon and believe traffic and comps can be sustained," said Barclays. (sarah.nassauer@wsj.com)

STORIES OF INTEREST

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Future 'Doesn't Seem Bad' for Key Fertilizer Makers -- Market Talk

13:43 ET - The future could be a bit brighter for some fertilizer companies, as increasing prices are seen benefiting producers plagued by an industry slump. Rising nitrogen prices have recently benefited CF Industries) and Norway's Yara, as demand for their fertilizers has recovered in India and competition from Chinese exports eased, according to BMO. Ongoing environmental concerns in China could lead to lower production, further benefiting nitrogen prices, BMO says. Still, concerns remain for Mosaic, which makes fertilizer out of phosphate and other materials. (jesse.newman@wsj.com; @jessenewman13)

FUTURES MARKETS

Hog Futures Tumble After Week of Gains

Hog futures fell sharply as traders locked in profits on a multi-day rally this week.

October lean hog contracts at the Chicago Mercantile Exchange fell 2.9% to 59.175 cents a pound. Prices were still up almost 7% for the week.

Analysts said Friday's selling was driven in part by bets that the futures market was out of step with cash prices for slaughter-ready hogs. The October contract was above average cash prices and the CME Lean Hog Index, which tracks the cash market.

CASH MARKETS

Estimated U.S. Pork Packer Margin Index - Oct 6

All figures are on a per-head basis.

Date Standard Margin Estimated margin

Operating Index at vertically -

integrated operations

*

Oct 6 +$33.95 +$ 24.76

Oct 5 +$35.99 +$ 25.41

Oct 4 +$37.71 +$ 24.72

* 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 107.1

(Percent of Year-Ago) Select 106.2

USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Friday fell 3 cents per hundred pounds, to $197.22, according to the USDA. Select-grade prices fell $1.55 per hundred pounds, to $187.23. The total load count was 129. Wholesale pork prices fell 30 cents, to $71.92 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

October 06, 2017 17:36 ET (21:36 GMT)