HYPERLINK "http://www.allendale-inc.com/products/products.aspx" Allendale Livestock Wrap-Up for DATE \@ "M/d/yyyy" 3/18/2009
Hogs: Front months ended firm while deferred contracts closed mixed. The session was choppy in nature and volume was light. The market held up fairly well considering several negative fundamental reports: Packers are said to be fairly full up on supplies. They are planning a lighter Saturday kill due to limp domestic demand. The U.S. Meat Export Federation reported January U.S. pork muscle meat exports fell 4% on the year. Terminal market cash hogs traded steady to weak at $34-$37; the midday pork trade posted weak prices for butts while the rest were unquoted. The wholesale trade was at a near standstill midday. Interior markets were off $0.49/$1.38 and averaged roughly $53.70. And finally, Iowa/Minnesota weights rose 0.2 lbs. to 268.7. They are now over 1.1 lbs. on the year.
Cattle: Moderate losses were seen in the April and June contracts today. More modest losses in the farther back deferreds. Most of the pressure was seen in the April due to its premium to last week’s $81.00 cash trade and concern that this week’s trade will be steady at best. Some talk lowered showlists may be countered by kill cut backs and contract cattle along with higher weights amid an indecisive beef market. Cash cattle was not established during the futures trading hours. The midday beef report showed 123 boxed loads which were trading mixed. Choice beef was off $0.81 and select was up $0.13. Some “positioning” also noted ahead of Friday's Cattle On Feed report.
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
