wmeubank@ocp.kcmo.com
ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(December 12, 1997) HOGS: Yes it's that time of year again...holiday trade. A little early for it, but I'll label it anyway. Cash traded at .50 to 1.00 lower today. USDA estimated slaughter at 377,000 versus last year's 352,000. Saturday slaughter is at the low end of private estimates at 55,000 versus last year's 34,000. Midday product was steady for most but 1 higher in the bellies. All we hear about is how the market is ugly. Here's the facts, production is up 7% over last year while slaughter is up only 5.7% over last. Weights are about even at 262 versus last year's 261. This is according to USDA Red Meat Under Fed. Inspection. Rumors of the Russian's buying early in the session boosted futures off morning lows. The USDA reported $15 mil. of pork and beef trimmings were bought today. The Russians have $75 mil. left of $95 mil. in export credits. Hogs closed down for all contracts except April. Down trend is still evident. The CME is petitioning the CFTC to allow a second belly contract. Currently the frozen bellies will stop in August and will be picked up by the fresh bellies in the September contract. Can we take two bellies at one time? Nearby bellies fell continued their direction by closing down in the double digits. Fibonacci retracement remains intact for the February contract.
Rich Nelson
Hogs
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Cattle
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