Allendale Livestock Wrap-Up for DATE \@ "M/d/yyyy" 3/11/2009
Hogs: Mixed close amid a consolidation from yesterday's strong losses. April was anchored to a degree by its relationship to the current lean index, though prospects of further erosion in cash hogs limited its upside. June has the best gains on rolling and expectations of further declines in hog numbers down the road. Lower cash hog markets tied in part to an expected reduced weekend kill amid poor packer margins. Cash hogs at the terminals steady to $2.00 lower at $38-43.00; interior markets lower by $.16 to $1.66 with a rough average of $59.00; midday pork trade had hams weak to unquoted, butts steady and the rest unquoted. Some concern as Iowa/Minnesota weights rose 1 lb. to 268.5 and now is 1 lb. over a year ago. That it may indicate the marketings are not as current as hoped for
Cattle: Moderate losses in a choppy, two-sided trade highlighted by April posting a new contract low. Early strength off a higher U.S. stock market and short covering from yesterday's lower close left by midday and prices tumbled hard before recovering. Demand-bear concern for beef remains the big problem with or without a stock market rally. The USDA report, in general, said '09 major meat export forecasts unchanged from last month's lowered level; also said livestock price forecasts are lowered due to reduced demand. Cash cattle not established; Sioux Falls terminal fails to open due to poor weather and limited deliveries. Choice beef fell $.10 while Select rose $.47 on 118 boxed loads
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
