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Wheat Futures Tumble to Multiweek Low

Wheat futures extended losses from last week, falling to a six-week low.

The U.S. Department of Agriculture estimated Friday that American farmers planted 32.6 million acres of wheat for 2018, the least acreage in over a century but more than analysts were expecting. That, along with larger domestic stockpile forecasts, prompted a selloff as traders bet the wheat market would continue oversupplied.

Sanderson Has 'Contingency Plan' on Animal Drugs -- Market Talk

10:22 ET - Sanderson Farms continues to defend its use of antibiotics in raising chickens, but the third-largest U.S. poultry company says it has a "detailed contingency plan" to eliminate those drugs if competitive pressures require, according to its annual proxy filing. Sanderson figures it could wean its entire 567 million chicken operation from antibiotics within 12 months, a plan developed "as a matter of good business practice" -- but one that Sanderson doesn't expect to implement, since it views chicken raised without antibiotics as mainly a product for "high-end specialty stores" that the company doesn't target. The company urges investors to vote against a shareholder proposal that would eliminate antibiotics used in human medicine from the company's chicken supply. (jacob.bunge@wsj.com; @jacobbunge)

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STORIES OF INTEREST

Soybean Futures Climb; December Crush Rises to Record -- Market Talk

12:21 ET - Soybean futures rise. The National Oilseed Processors Association said that its members crushed a record 166.382M bushels of soybeans in December, a sign of strong domestic demand for the crop. But soybean farmers are also contending with weaker international business. USDA on Friday trimmed its soybean export forecast for 2017-18 by 65M bushels to 2.16B, and analysts say that could fall further yet. CBOT March soybean futures climb 0.4% to $9.64 a bushel. Wheat futures extend overnight losses on concerns about oversupply while corn prices are little changed. (benjamin.parkin@wsj.com; @b_parkyn)

Russian Wheat Offered Cheapest in Egyptian GASC Wheat Tender

LONDON--Egypt's state grain buyer received at least eight offers in its latest wheat tender, with Russian grain again offered at the lowest price, excluding shipping costs, traders said Tuesday.

Russian wheat is retaining its hold on Egypt's General Authority For Supply Commodities (GASC) wheat tenders. Russian Black Sea wheat has now exclusively filled nine of the last 10 Egyptian GASC tenders.

Egyptian GASC Seeks Wheat in Tender

LONDON--Egypt's General Authority for Supply Commodities issued an international tender late Monday to buy an unspecified amount of milling and/or soft wheat for delivery between Feb. 18 and Feb. 28, traders said.

The government body's decision on which offers to accept is expected around 1530 GMT on Tuesday.

FUTURES MARKETS

Hog Futures Rally to Multimonth High

Hog futures bounced more than 3% to a five-month high.

Cash prices for physical hogs rose steadily for three weeks on strong demand from meatpackers for pigs to fill new slaughterhouses. But the futures market was mixed, pressured by a series of factors such as uncertainty about the future of the North American Free Trade Agreement.

CASH MARKETS

Zumbrota, Minn Hog $2.00 Higher $43.00 - Jan 16

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are $2.00 higher at $43.00 per hundredweight. Sow prices are $1.00 higher. Sows weighing 400-450 pounds are at $31.00-$33.00, 450-500 pounds are $31.00-$33.00 and those over 500 pounds are $35.00-$37.00.

The day's total run is estimated at 150 head.

Prices are provided by the Central Livestock Association.

Estimated U.S. Pork Packer Margin Index - Jan 16

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

*

Jan 16 +$14.99 +$ 40.93

Jan 15 +$15.50 +$ 41.83

Jan 12 +$14.25 +$ 38.99

* 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 107.7

(Percent of Year-Ago) Select 107.2

USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Tuesday fell $2.45 per hundred pounds, to $205.58, according to the USDA. Select-grade prices fell $2.15 per hundred pounds, to $199.89. The total load count was 148. Wholesale pork prices fell 42 cents, to $79.44 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

January 16, 2018 17:45 ET (22:45 GMT)