Hogs: Given the size of the decrease in corn prices Wednesday, we must say hog prices did well in holding their ground. Hog futures have been correlated with corn prices in recent months. Also, bulls should be seeing the benefit from lower pork production in the coming weeks. That could help offset some of the short-term demand problems here.
Cattle: Though wholesale beef prices have shown a rebound in the past two days on Memorial Day buying, no one in this market is buying it. Feedlots are offering to sell cattle at $113, a full $2 lower than last week’s trade! Those heavy December placements will start to be marketed later this month. That supply flow will last through July. With heavy numbers ahead, traders are not willing to rally the June contract…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.