HYPERLINK "http://www.allendale-inc.com/products/products.aspx" Allendale Livestock Wrap-Up for DATE \@ "M/d/yyyy" 4/8/2009
Hogs: Mixed close with most of the pressure up front, likely from April's premium to the lean index and the average interior hog markets. While there is support under the market that a seasonal cash low is at hand, there is some concern that it may be delayed due to recent weather, a late Easter, and a weak domestic, global economy. Weights were a bit disturbing as well with Iowa/Minnesota slightly lower on the week but still 2.1lbs over a year ago. Technically, June hogs has spent the last couple days coiling around its major moving averages (I use the 45-50 day).
Cattle: Very narrowly mixed close as the market moves itself sideways. It is biding its time to see if cash cattle has enough demand to hold $85.00 and over in the live. Underlying support came from bullish attitudes while beef prices keep moving higher even though movement was limp. Trade talk is that cash bottomed last year in early April and hopes that the domestic economy, when weather warms, will support higher prices from the BBQ side. Also, the Sioux Falls terminal opened up $1.00 higher at $81.90-83.90; few reported out of Nebraska and Iowa/Minnesota at $136-137.00 (up $1-2.00, possibly regional packer). Technically, June has been 'coiling' around its 100-day moving average. Beef midday up $.18-.61 on 158 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
