The U.S. dollar is stronger.
Last week’s USDA report held some bullish surprises, particularly in soybeans.
Winter wheat net-longs rise to highest in more than two years.
At Friday’s close, Kansas City futures settled at a five-month high, Chicago at a two-month high, and Minneapolis at an impressive seven-month high.
The corn market moves slightly higher.
Analyst Bryan Doherty encourages hog producers to treat summer futures months defensively and to have a strategy ready when the market moves quickly.
The latest Hogs and Pigs report released on December 23 indicated that pork supplies in 2017 will be larger than prereport expectations.
For most of this rally, the trade is pointing out that packers are showing a willingness to pay up for next week’s kill.
This fall, prices for wheat, corn, and lean hogs fell to 10-year lows. Unfortunately, costs of production are not at 10-year lows.
As demand grows in response to low prices, any adversity to production could send prices significantly higher than expected.