Hogs: There is a small gap on the July from 80.97 to 81.07 that traders could be using as a technical target in the short term. Aside from a little short term weakness here we are not looking for much of a break. Seasonally cash hogs post another week or two of gains. In July, we will start getting more interesting in hedges for the second half of the year.
Cattle: Mixed action with the stock market helped futures run sloppy as well. Cash cattle traded in Kansas yesterday at $91 and Texas joined them today at that price. That was a little disappointing but considering last week’s trade was $91 as well, that’s not a bad deal. Any steady trade during what is a bearish time of the year for cash cattle prices is a bonus. Overall, we still look for August to trade $88 to $91 at expiration…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.
