Hogs: It was good to see some stability appear Wednesday. As noted before, this market had sharply overpriced the impact from potential lower Japanese purchases. Futures have $1 left on the upside to correctly price in a 15% drop in exports.
Cattle: It is interesting to see cattle futures only thought to pay attention to the Japan news in the past two days. April futures closed to a level not seen since Jan. 7 on Wednesday. June futures posted their lowest close since Jan. 10…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.