Hogs: Just two weeks ago everyone was ready to give up on this market. Now, it is pushing into territory some thought impossible to see for the summer. Futures, in the 95 range, are implying cash hogs will retest the 95.97 high that the lean hog index made in late May. This market continues to benefit from ideas of lower chicken production helping this market in July.
Cattle: Traders were hoping to see some cash cattle sales this morning. Cattle feeders have been noting positive kill margins could influence packers to accept defeat early in the week and buy cattle at higher prices. Instead packers posted bids at $103 against feedlot offers of $107/$108. That is some pretty wide territory and shows packers are not interested in rolling over. Also disappointing, midday boxed beef prices showed slight losses. If beef cannot hold its ground then bullish arguments erode…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