Hogs: Wednesday morning’s release of Hogs and Pigs estimates were considered a slightly bearish event. One key bullish issue recently has been the much tighter than forecast slaughter levels. The average guess for hogs weighing over 180#, which will be marketed from Sept. 1 to early October, was 4.4% lower than last year, according to Dow Jones newswire. The next age group, 120-179#, is 3.3% lower. The main message is the trade feels the days of 6% to 7% lower kills will be ending soon.
Cattle: In the past three days, October futures have lost $3.25. The trade has likely factored in the negative news from Friday’s Cattle on Feed report by now. Having pointed out the bearish side, we must say our key sticking point toward becoming long-term bullish may have changed. Wholesale beef closed higher for both choice and select. Is this the turning point?...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.
