Allendale livestock wrap-up
Hogs: Strong gains in what seems to be a correction from a series of new contract lows; oversold technical conditions; and talk perhaps the cash markets may be trying to form a bottom. After the current sharp losses in the interior hog market, reports suggest that the packer's overall margins have narrowed from large red to about even. However we also need to see the pork trade perk up. Terminal hogs opened steady to down $2.50 at $35-36.50; interior hogs off $.65/$1.91 to an average of roughly $52.00 per hundred weight. Midday pork trade quiet with hams steady up $2 and the rest largely unquoted. Final pork report showed the cutout up 41¢. I/M weights dropped 0.8 lbs. from the previous week though still up 0.6 on year at 267.4 lbs.
Cattle: Boxed beef, on the final report, mixed as the choice/select spread widens at up 26¢ to down 98¢ respectively, seen as slightly supportive. Cash cattle in the Northern and Southern Plains is not seeing firm bidding as of yet. However, the Sioux Falls, SD terminal opened steady to up $1 this morning. Weekly beef export sales out tomorrow and will see if the sales can at least keep pace with last week's 10,300 tons, an improvement from the previous week’s 9,300 tons. Last year in the same week it was 7,317 tons. Also positive is that the overall show lists are down from the previous week and packer losses have been tempered some.
John Kleist is an Ag Specialist at Allendale, Inc. in McHenry, IL. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com
