TOP STORIES

Tighter Regulations Loom for US Meat Industry -- Market Talk

1640 ET - The Biden administration is zeroing in on the US meat industry, striving to boost competition through a series of rules covering meat-labeling, market access and farmers' dealings with big meatpackers. On Tuesday, White House press secretary Jen Psaki said a sweeping executive order forthcoming from President Biden sought to give farmers and ranchers more power vis-à-vis meat companies through anti-retaliation and other measures. It also will address the need for more transparent labeling of meat's origin and seek to expand markets for farmers in a highly-concentrated meat industry. The rules promise to touch on hot-button issues that have long divided the US livestock industry, but are intended to boost farmers' earnings and choices for consumers, Psaki said. (jesse.newman@wsj.com; @jessenewman13)

STORIES OF INTEREST

A Product Recall Adds to Numerous ESG Issues for Tyson Foods -- ESG Insight

Tyson Foods Inc. said Saturday it is recalling 8.5 million pounds of chicken out of "an abundance of auction" amid fears of the presence of listeria monocytogenes, a potentially deadly bacteria. The product quality and safety incident is the latest in a series of ESG events with potential negative implications for the world's second-largest meat producer. Tyson, which appointed its fifth chief executive in as many years last month, is part of the Broiler Chicken Antitrust Litigation in the US chicken industry, which has raised corporate governance concerns over business ethics and competitive behavior. The recall comes as Tyson is struggling to meet demand as the US economy rebounds, forcing it to raise wages to ensure capacity as well as to buy meat from rivals to meet orders.

US Farmer Sentiment Takes a Dive -- Market Talk

10:49 ET - US farmers are becoming less optimistic about their future prospects, according to a survey from Purdue University and CME Group. "Farmers expect their input costs to rise much more rapidly in the year ahead than they have over the last decade, contributing to their concerns about their farm finances and financial future," says James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture. According to the survey, farmer optimism has fallen hard since April, and is at the lowest level in nearly a year. Grains futures are lower today due to increased rainfall expectations in US growing areas. CBOT corn futures sink 6.9%, while soybeans are down 4.9% and wheat is off 5.1%. (kirk.maltais@wsj.com; @kirkmaltais)

Biden Administration Targets Farmers' Tractor Repair Bills -- Market Talk

1535 ET - The Biden administration says it wants to make it easier for farmers to fix their own tractors and combines. That's an increasingly tough job, as companies like Deere and CNH Industrial load up new farm equipment models with software and sensors that more closely than ever control the way crops are planted and managed -- but also have often required farmers to take even minor repairs to manufacturer-specific dealers, which some farmers have said costs them more time and money. White House press secretary Jen Psaki says Tuesday that President Biden intends to include tractor repairs in a wider-ranging executive order covering other farmer-agribusiness matters. (jacob.bunge@wsj.com; @jacobbunge)

US Ethanol Inventories Expected to Rise -- Market Talk

14:06 ET - Inventories of ethanol in the US are expected to extend their climb, according to analysts surveyed by Dow Jones. Analysts surveyed expect inventories to rise to as high as over 22.3M barrels, which would be the highest that they've been at since February. Meanwhile, production may go in either direction, according to analysts, with production forecast between 1.04M barrels a day and 1.068M barrels a day, versus 1.058M last week. CBOT corn futures hit limit-down early in trading, with the most active contract down 6.9%. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS

Hogs Lead Livestock Higher -- Market Talk

1505 ET - Lean hog futures led CME livestock futures higher , with the most-active contract up 2.1% to $1.0235 per pound. Pork cutout prices were largely higher today, with ribs, hams, and bellies all posting big gains mid-day. Retail data suggests that US pork consumption is strong, says Steiner Consulting Group. "Pork retail feature activity for the latest holiday weekend performed much better than beef," says the firm. "In the four weeks ending July 2, pork retail featuring activity averaged 9% above the five year average. Certain pork items presented significant value for retailers relative to other proteins and saw a significant jump in featuring activity." Meanwhile, live cattle futures finished trading up 0.3% to $1.224 per pound. (kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

07-06-21 1718ET