CATTLE: Cash cattle this week $126.00 (steady) north/south live so far; $198.-199.00 north dressed (dn. $1-2.00); boxed loads cut outs——-not available: Carcass Equivalent: Not available.
COMMENTS: Not much has been said about a major Chicago grocery chain store closing 78 stores, the fate of which up for grabs; I bring this up because the chain, Dominick’s; buys (bought) a hell of a lot of beef and pork (and poultry); will advise when I know more. Here’s a wire service (partial) article on South Korea:
A Texas plant operated by Brazilian meat-packer JBS SA (JBSAY, JBSS3.BR) has been deemed ineligible for export to South Korea, after the country found a banned feed additive in meat supplied by the facility.
The ban prohibits beef and beef products processed by a facility in Cactus, Texas that belongs to Swift Beef Company–a subsidiary of JBS SA’s U.S. arm JBS USA–which were loaded on board ships on or after Oct. 9 from entering South Korea. The U.S. Department of Agriculture’s Food Safety and Inspection Service updated the export requirements for Korea to reflect the change Thursday.
A probe on Sept. 24 found zilpaterol, a controversial feed ingredient known by the brand name Zilmax, in 22 tons of beef imported by Swift Beef Co., South Korea’s Ministry of Food and Drug Safety said Wednesday.
Representatives of JBS could not be reached for comment.
Ha Tae-eun, an official with South Korea’s food ministry, said it would conduct tests on other U.S. beef imports “on a random basis and expand checks to meat from all U.S. beef-processing sites if we find more zilpaterol.”
South Korea accounts for about 11% of U.S. beef exports, according to data from the U.S. Meat Export Federation, an industry group. I’ll stay aside for now as before but still strongly suggest some option hedge protection; I’ll help where I can on strategy. Open interest rose 3,394 led by Dec. up 2487 amid light volume.
Interior cash hogs yesterday not available, last rough avg. $89.50; cut outs n/a; lean index as of 09/27 @ $96.30, no longer available.
COMMENTS: Like the beef, a major grocery chain closing could mean a lot to the meat industry (and the workers: my brother retired a couple year ago as a top butch for them and his wife still runs a deli for them); some talk over a hold-back of hogs with the government shutdown making them rather invisible (note: partial government opening might occur today); open interest fell 5,484 led by Z/G off 5400, volume moderate. No opinion change.