Hogs: This $80 level on the August may be a good point to slow this decline down. As we noted before, we are having some problems with pork demand right now. We attribute the majority of this due to that large chicken problem we discussed last week. We view the remainder of summer as mostly a sideways market and will use small rebounds to get hedges placed for producers. See the Hedge Advice page of the Allendale website…Rich Nelson
Cattle: The stock market pulled out a dramatic run higher by the close on Wednesday. The last tick on the Dow shows a 275-point higher trade. That was the primary driver for the day's strong live cattle futures action. For beef news, cash cattle traded at $91. This was expected and now makes it four weeks in a row of stable $91 action. On the beef end, midday prices were mixed. So here’s where we are right now. Cash cattle is holding its ground pretty darn well in the face of what is a normally bearish time of year. Our target range for August futures at expiration remains $88 to $91...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.