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US Dairy Farms Drying Up, USDA Says -- Market Talk

1020 ET - More than 2,700 dairy farms closed in 2018, according to USDA figures, as milk producers from Wisconsin to Alaska grapple with a years-long funk in milk prices and costs continue to climb. Consumers have been slowly moving away from milk for years, though overall milk production has steadily climbed, leaving the industry more reliant on exports -- which have been challenged by US trade disputes. The USDA estimates 37,468 licensed dairy herds in the US at the end of 2018, with nearly 600 closing in Wisconsin, about 300 in New York, and Alaska going from two down to one. (jacob.bunge@wsj.com; @jacobbunge)

UK Food and Drink Federation Slams No-Deal Brexit Tariffs -- Market Talk

1159 GMT - U.K.'s Food and Drink Federation chief executive Ian Wright criticized the government's long-awaited tariff regime under hard Brexit as "disgraceful" and indicative that the U.K. isn't ready to leave the EU in March 29. The government announced tariffs will be cut to zero on 87% of imports to the country, but prices of some imports, including cars, will go up. The plans also include some new tariffs and quotas. "There must be proper consultation with business before a change of this magnitude is introduced," he says, adding that the plan is confusing and complex and likely to result in massive trade distortions. "Many food and drink manufacturers who trade with the EU will surely question whether the U.K. is the right place for them to be," he warns.(lorena.ruibal@wsj.com; @lorena_rbal)

STORIES OF INTEREST

Ag Market Perplexed by Unusual Shorting Activity -- Market Talk

12:11 ET - The amount of short positions held on the CBOT by investment funds is puzzling grains traders, who say that normally this close to the next planting season markets are not this bearish. According to the latest CFTC data managed money funds are short in corn, soybeans and wheat. The only other time funds took a net short position in either corn or soybeans at this time of year was 2016, according to commitment of traders data examined dating back to 2010. The reasons are not clear. "My best guess, at this time, is that investment funds are using this as a hedge against stock positions in the event that a trade deal blows up and we go back to tariffs," says Brian Grossman of Zaner Group. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS

Livestock Futures Take a Break from Sharp Movements -- Market Talk

15:31 ET - Both live cattle and lean hog futures on the CME had a respite from the volatility seen with both prices this week, with April live cattle futures virtually unchanged at $1.26675 per pound and April hog futures down 0.3% to 63.475 cents per pound. For hogs, the drop today puts an end to a three-day rally, while for cattle the nominal move does nothing to recover prices from yesterday's 1.8% drop. Such a recovery may not come for awhile, amid reports of cattle supply appearing to become more available. The supply of cattle on feed remains above year ago levels, which should bolster supplies in the near term," says Steiner Consulting Group. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Mar 13 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
Mar 13       +$ 26.04            +$  9.49 
Mar 12       +$ 37.21            +$  1.81 
Mar 11       +$ 30.77            +$  7.55 
 
* 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  102.0 
      (Percent of Year-Ago)     Select  101.2 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Wednesday rose 2 cents per hundred pounds, to $228.24, according to the USDA. Select-grade prices fell $1.07 per hundred pounds, to $219.28. The total load count was 118. Wholesale pork prices rose 25 cents, to $66.15 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

March 13, 2019 17:32 ET (21:32 GMT)

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