Weekly Purcell Report

US - Agricultural US Commodity Market Report by Wayne D. Purcell, Agricultural and Applied Economics, Virginia Tech.
calendar icon 19 March 2003
clock icon 2 minute read

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In the lean hog pits, the more distant contracts look a bit more favorable than the nearby April does, but we are starting to see some gradual improvement in the cash prices for hogs.

Weighted average price on barrows and gilts in the national direct hog market closed out last week just above $48 on a carcass basis, and that is about $3 per cwt. on a carcass basis above where we were just a few weeks ago.

Late February highs on that nearby April lean hog futures are up around $55, and I suspect that is the next resistance plane at which we will see selling emerge.

I would be inclined to think about placing or replacing short hedges on a rally toward those highs.

I always advise placing your sell orders a bit below the specific high to increase your chances of getting a fill in these volatile markets.

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