Hog traders wait on quarterly USDA herd update

Hogs: On the last trading day before Christmas, Friday, Dec. 23, the USDA will release the quarterly update to the nation’s hog herd. Last quarter, on Sept. 1, USDA estimated the hog herd was 0.6% higher than last year. Some fear that could grow a little next week. Keep in mind, due to the exciting fundamentals in 2012 (lower beef and chicken production and lower feed costs) this time it may not mean sharp losses to producers…Rich Nelson

Cattle: What is very tough about the current environment is the massive difference between perception and reality. We had a recession in 2008/09. That also translated into less beef demand. There is a direct relationship. Looking ahead into 2012, the market fears the EU situation could spill over into the US. So far, US consumers do not have that fear…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.

About the Author
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.

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