Hogs: That Iowa/Minnesota report, which we discussed briefly yesterday, showed lower prices on both the morning and afternoon updates. The one unique packer which has been pushing negotiated (free market) hog prices in the past three weeks was not a factor today. Packers have a good Saturday slaughter lined up and are getting a little concerned about margins up ahead. Wholesale pork prices have moved back to the upper end of this sideways trading range and are finding some price resistance. It would appear cash hogs are doing the exact same thing therefore. One thing we will note is pork has now posted two days of lower prices. It is not enough to call a top yet but is something to watch. Keep in mind futures are implying cash hogs will move higher into December which is a tough thing to do at this time of year.
Rich Nelson is Director of Research 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