Hogs: The surprise Wednesday was the midday cash hog report. The Iowa/Minnesota run came in $1.40 lower. That was a surprise after early morning bids were steady to $2 higher. This will mark three days in a row of lower cash hog prices. It could encourage some to start saying a near term top is at hand. At this point, we cannot get too excited about that idea.
Cattle: In the past few weeks, we had been warning against getting bulled up in this market. Our argument was that though demand had been fantastic, it just would not overcome the supply flow ahead. That change in trade psychology is happening right now…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.