HYPERLINK "http://www.allendale-inc.com/products/products.aspx" Allendale Livestock Wrap-Up for DATE \@ "M/d/yyyy" 3/25/2009
Hogs: Mixed to mostly lower close in a thin trade. While the losses in the cattle pit kept rallies in check, there remains uncertainty over the hog supply as the Canada COOL (labeling) law kicks in April 1. Many packers have stated they will not process Canada hogs. Otherwise, there is some concern over the I/M weights that rose .8 lbs. on the week to 269.5 lbs. and are now 2 lbs. over a year ago (that's decent extra tonnage); USDA Attaché reports Russian poultry production will rise another 8.8% in '09 after a 15% rise in '08; and Russia reports Jan. /Feb. beef imports down 40%, pork off 31% and poultry down 18%. Interior hogs early rose $.72/.86 to a rough average of $55.00; midday pork trade flat to unquoted; terminal hogs steady/up $1.50 at $35-38.00.
Cattle: Moderately strong losses here. Once again, the April's stretched out premium to the live was at risk when the trade seemed to believe the cash cattle market may be no better than steady. Part of the thinking comes from weak beef movement as beef prices rose to make up for the packers paying up for cattle last week. Demand does not seem fit enough to support much higher cash prices as yet. Technically, the June had been coiling around its major m/a's the last four days and failed to break out above them (I use the 45-50 day). Sioux Falls terminal cattle opened steady/firm at $80.50; beef midday narrowly mixed on 119 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
