Hogs: As it stands right now, we would look for this week’s kill to end at 2.322 million head. That is 1.9% over last year and in the same range as the past six weeks (excluding Thanksgiving). This run of high supplies is a little disappointing. With this mindset, cash hogs slipped $2.68 in the closely watched Iowa/Minnesota run. That should not be too astounding, though. Last week’s cash hog trade was up a little too high with a $5.71 gain.
Cattle: ADP released its survey of private employment, and the group indicated 93,000 new jobs were posted in November. This would represent the largest one month gain in three years! We have said for months the economy had finished with the recession and we were on the road for a very slow recovery. That should be evident to everyone now. Let’s see how the government’s survey of both private and government employment goes on Friday. Overall, an improving job outlook means slightly more beef per consumer…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.
