In the past few days wholesale pork has fallen 23-cents, 76 cents, $2.30, and now 65-cents. This loss of almost $4 has been balanced by hopes for pork exports. Massive declines in the US dollar are lightening up that situation. We are long term bullish all 2009 contracts but in the short term the dollar vs. cash pork battle makes this a sideways market.
More on Meadowbrook Farms: An Allendale client asked us to clarify the Meadowbrook Farms story. This producer owned hog plant, out of Rantoul, Illinois, has some disgruntled producer/owners. Our client, a hog producer and former shareholder of Meadowbrook, let us know on this year's truckloads to the plant he was paid an average of $20 per head under the Eastern Cornbelt average. After leaving Meadowbrook he is finding his hogs are getting at least a $4 per head premium over the ECB average at a competing plant.
Lean Hog Technical Commentary: That gap is still open to 6305 on the February. The trend is still down though. Next projected major turn day for lean hogs is December 30.
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