Hogs: With only 2% to 3% of cash hogs reported on the Iowa/Minnesota daily report coming from free market hogs, “negotiated,” the trade is wondering how much longer this will remain a viable price to base contracts off of. In recent days, relatively small amounts of hogs have moved this price category sharply. One market reporter told us Wednesday about his frustration of seeing the IA/MN AM report with higher prices while most cash hogs were trading lower. This is the reason we do not get too excited about the daily movements. The trend is still viable and we must report the recent trend is down…Rich Nelson
Cattle: Three things came together for lower prices. Early this morning ADP released its survey of private market employment. It found job growth slowed from 177,000 in April to only 38,000 in May. That sets up reduced expectations for Friday’s monthly numbers from the government. Weaker-than-expected growth could mean weaker-than-expected beef demand…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.