Hogs get hammered, cattle beefed-up
Hog prices made a dramatic U-turn to the downside on Thursday, just as live cattle futures blasted through the ceiling developed at the beginning of August.
The main reason hogs fell was disappointment with export numbers, especially to Japan. Cattle jumped on huge demand for prime ribs and beliefs that this demand could remain strong through the holidays. Some cattle producers and investors sat on their hands, waiting to see whether consumers would celebrate the holidays with steaks, pork and poultry or save funds for gifts and travel expenses.
The results of a U.S. Cattle on Feed report to be released after markets close will provide data regarding the number and size of cattle placed into feedlots. Shoppers might expect to see beef rise when compared to pork, if the pork becomes featured as hog producers sell their market-ready, heavier animals.
Farm bill grows close to expiration date
Roughly every five years, Congress enacts a new Farm Bill to govern a number of agricultural and food programs. The current bill, which actually expired at the end of September, will serve to cover the 2024 crop season. A lame duck Congress will take up a new bill when they return on Nov. 12.
The Congressional Research Services lists 12 titles under the current bill that show the comprehensive nature of the legislation. The various titles include support for commodity crops, environmental and farmland conservation, agricultural exports, U.S. nutrition such as the SNAP program, farm and ranch land loans and rural development. Additionally, research, forestry, energy, horticulture, crop insurance and livestock/poultry are covered. The 10 year cost projection for the 2018 bill was $867 billion. This important legislation will need to get through Congress before 2025 to provide uninterrupted continuity to the agricultural community.
Friday’s markets
CME midday prices: Gold for December delivery $2,750 per troy ounce, silver $34.00 per ounce, copper at $4.38 per pound. December crude oil at $71.62 per barrel. November soybeans were at $9.85 per bushel, December corn at $4.16 with December wheat at $5.72. December cattle $188.80 per hundred pounds, December hogs, $78.35. The “candy commodities,” sugar and cocoa, have been on the decline for the past few weeks providing hope that kids will receive plenty of treats next week.
Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com.
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