Traders Return Just In Time For Christmas Surprises

As traders return from their Christmas Holiday, they are being welcomed back by surprises.  First, USDA releasing their quarterly Hogs and Pigs report Friday afternoon. Analysts were originally expecting at a 2% increase in market hogs and a breeding herd steady with last year.  That’s not exactly what they got. Shayle Shagum is a livestock analyst with USDA:
Hogs and Pigs
Less surprising was the monthly Cattle on Feed numbers.  The report still solidly reflected expansion, but more in line with what the trade was looking for.  USDA economist Seannica Herron:
Cattle on Feed
Meanwhile in the grain trade, rain falling as forecasted across most of Argentina and Brazil. However, the trade was left asking if it will be enough.  Mark Brusberg is a Meteorologist with USDA
Weather
Present weather forecasts show moisture through the end of the year but the extended term is less certain.  Soil moisture around Brazil’s Bahia region in particular appears to be developing dryness as we head into the middle portion of the season.