Hogs: The Midwest snow storm closed packing plants and reduced hog slaughter. As a result, more hogs will be available next week and should pressure cash prices. The premium of futures over cash has traders taking profits. The technical island top yesterday in the Feb contract also is weighing on traders confidence after the sharp rally. The bounce in the dollar is also giving reason for profit-taking. Higher corn prices support summer contracts…Paul Georgy
Cattle: Cash cattle buyers were in hibernation on Wednesday due to severe cold and weaker futures. Feedlots were offering cattle early in the trading day at 109 to 110 in the south. Futures started strong on weather stress on cattle in feedlot area. However, ideas that the cold would not stay around long and the weakness in pork complex quickly had traders taking profits. The uptrend in April cattle is still intact. The reduced slaughter is keeping product market supported but traders are concerned about next week when slaughter gets back to normal…Paul Georgy
Paul Georgy is President and CEO of Allendale, Inc. in McHenry, IL. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com.