Allendale Livestock Wrap-Up for 2/24/2010
Hogs: Gains in futures have been slowing in recent days. In fact, yesterday’s outside day which closed down may tell us this market will begin to struggle. We see this afternoon’s wholesale pork price fell $1.07. That is the first lower day after seven positive sessions.
Cattle: Nebraska joined the south today and traded cash cattle at a price steady with last week. That was $145 dressed. It also appears more sales in the Kansas through Texas live based trade are occurring at a steady $92. There remain many positive factors here. A couple of the key ones are weather and good exports. On the downside, we still have a problem with thinking the April can push much past the $92.00 area. We must have domestic demand back on track to expect a second rally here.
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