Hot kills accelerate in face of $8 corn

August 15, 2012 06:09 PM
Farmers dumping hogs?

Hogs: June pork exports were 8% higher than last year. That is not too much to get excited about. Instead, the trade turned its focus to this discussion of larger than expected hog slaughter this week. Kill this week is up 75,000 head over last. It appears there is no problem finding available hogs now that the sting of $8 corn is filtering through. The industry is currently talking of a large 80,000 head Saturday kill. We remain negative to this market…Rich Nelson
Cattle: We can’t say the recently released beef export numbers held good news. Exports in June were 14% under last year. That is about on the slow pace in May. At least the import numbers fell a little. May imports were 22% higher than last year. The new June numbers were 3% higher than last year. The good news is the trade was more interested in today’s release of Cattle on Feed estimates. The average analyst guess for July Placements was 8% lower than last year. As we showed on the chart last night this is still a big number. The trade was relieved that they at least were not larger than last year’s record July level. This good information, combined with big gains yet again for wholesale beef (+1.89 and +1.75), keep us supportive this market…Rich Nelson

About the Author

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.