Hog prices produce profits, while cattle kill down

Hogs: At current futures closes, and with normal basis levels applied, hog producers can lock in profits of $6.80 per head next year. That does not sound like much but let’s consider the fact this is after a three week downtrend in hog prices!...Rich Nelson

Cattle: This week’s cash cattle guessing game will be a tough one. Bulls do have the upper hand from this week’s change in psychology from the storm. Don’t count out packers though. This week’s kill is down a large 47,000 from last year through today. Packers will have to fit those numbers somewhere into the next two weeks. That means they don’t need to be aggressive bidders…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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