Hogs: Traders continue to get hit with newswires reporting on record 275 lb weights. Slaughter levels are also just a little higher than last week. With this news in mind we will point out slaughter levels for the week are 1% lower than last year at this time. While the trade is so focused on the “right now” picture, we will point out this supply situation should not be as dire by the time Dec. 14 rolls around.
Cattle: Active cash cattle sales at $100 in both Kansas and Texas may have been a disappointment as it was down $2 to $2.50 from last week. It was not too much of a surprise though. You could argue last week’s tremendous $5 gain may have been a little too much too fast. Paul made a good point in Tuesday's comments that packers do have good reason to try to rein things in at the end of the month. Wholesale beef prices broke yesterday.
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.