Hogs: The trade took Tuesday's Cold Storage report news to heart. As we noted that night, it appears end users did favor cheap chicken rather than pork and beef last month. This may be a temporary setback in a market that has been running on hopes for exports to Japan. On that side, it appears Japan has not stopped buying pork. An official with Canada Pork International reports Japanese buying of Canadian pork is progressing as usual.
Cattle: Tuesday's Cold Storage report was disappointing for beef. We noted there was a 6 million pound increase in beef stocks in February. During that month we are typically drawing down supplies. This may help the trade stumble for a day or two. In other news, Wednesday's kill was around 10,000 head under week on the same day. It appears the JBS Greeley Colorado plant may have been down. Also negative, we will point out the midday beef report showed mixed pricing. Bulls need to have good news piling in to keep their market hopes alive. For cash cattle, Texas traded around 1,500 head Tuesday at $113 and it appears some $114’s are moving in Kansas. Last week averaged $114…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.