Hogs: Futures managed a moderate gain on Wednesday. Traders were more likely looking at the higher cattle futures than any new hopes for hog fundamentals for direction…Rich Nelson
Cattle: Two weeks ago, packers were losing $47 per head according to our models. This was part of a string of net losses over 10 weeks. As wholesale beef has stabilized, and cash cattle plummeted this week, implied margins rose. They are currently up to $70 per head!...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.