Hogs: Hogs posted a slight rebound Wednesday on the trade’s realization that we do not have a new Swine Flu epidemic in front of us. Hopefully we can get past this issue in the coming days. Up ahead, we must point out the seasonal rebound for September. This comes as buyers procure for the heavily marketed National Pork Month promotions. A slight rebound is typically seen as shown by the seasonal price index line. It is good for a bounce but typically not a market bottoming event…Rich Nelson
Cattle: For weeks we have been hearing about this post-Labor Day letdown in demand. It really has happened. It also pressured cash cattle prices for a period of time as well. However, Friday’s cash cattle trade at steady $113, and Wednesday morning’s higher quote for boxed beef, is making the market wonder if this issue is over. Allendale had looked for prices to decline into mid September. We feel recent market activity shows us it is time to start our long term bullish position that has been discussed this summer…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.