Hogs: You may not believe it, but December futures made their best close in 11 trading sessions on Wednesday. Similar to our beef comments we have to wonder if this market is telling us it is ready to look northward before short fundamentals rebound. This week’s kill is going to be another good one. Wholesale pork prices were up yesterday but down today.
Cattle: In some weeks, cash cattle action leads futures and in others futures leads cash cattle. Today’s higher futures action has firmed feedlot resolve. Early this morning, bids of $96 indicated packers would be willing to only buy steady at $98. Wednesday afternoon, the mood is changing to a steady to higher mindset. These changes are futures led. We must point out wholesale beef prices have been mixed to lower all week. Wednesday's numbers showed a 92 cent loss for choice and a 36 cent loss for select. The futures gains were also made in the face of lower corn. They were also made in the face of yesterday’s bearish beef projections. We pointed out yesterday USDA added to its 2011 beef production estimate…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.