Hogs: It is normal at this time of year to see finishing weights pressured. High temperatures inhibit efficient weight gains. If we see a few more mid-90s lined up in the Midwest, we could see finishing weights go from over last year to under last-year levels. By itself, that could take 1% off production. So far, that is not in the near-term forecast…Rich Nelson
Cattle: Though beef cow slaughter fell below last year levels from March through May, it is still more than enough to ensure liquidation continues. The cow herd is 4% smaller than the five-year average. Cow slaughter since January 1 has run 7% higher!…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.