Hogs: The wheat market and drought in Russia had an impact on hog futures Wednesday. Concerns are mounting that livestock producers are liquidating some inventory because of available feed supplies. This could eventually drive poultry demand back to the United States. Indirectly, that is friendly to pork longer term as we reduce our competitive meat supply. Money flow by large funds and speculators will continue to create volatility at the current price level.
Cattle: Packers raised bids to $93 earlier, but feedlots are still holding out and asking $96 to $97. Packers’ advantage in the standoff is that they can pull August contract cattle to keep chains rolling. Feedlots have the tighter supply of market-ready cattle on their side. Midday choice beef values were down $o.34 and select was up $0.82. The reversal in cattle futures is also adding some confidence to sellers hoping to higher prices…Paul Georgy
Paul Georgy is President/CEO 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.