Allendale Livestock Wrap-Up for 2/11/2010
Hogs: While there have been problems with snow in recent days we must point to how the wholesale pork market is taking this issue for general direction. Pork fell slightly for three days and on Wednesday closed 24¢ higher. If pork prices can only post one day of higher prices off this, we are not too concerned.
Cattle: Futures spent the day spinning their wheels. Much of the general news is watching the large snow system over the east coast. That should make for lower beef demand but so far the wholesale beef market has not been concerned. Instead, it believes the production problems in the plains, and Friday’s employment report, are the key drivers. Our initial hedge prices are $92 in the April and $88 for June and August...Rich Nelson
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