Weekly Purcell Agricultural Commodity Market Report Wayne D. Purcell Agricultural and Applied Economics Virginia Tech

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June lean hogs joined the later contracts in making new contract highs on Monday but were getting hit with selling on technical grounds in Tuesday's session before the BSE story in cattle.

Hold short hedge placed on recent rallies to above the old December high near $67 and watch any downward correction in this market. When it runs its course somewhere near $63 and starts to rally again, and the BSE story could help boost pork prices, then sketch a trend line across the April lows and that correction low to $63 or wherever buying comes out.

I would tend to go ahead and sell a rally back to the new high of $67.50, however, since the market has quit there once and quit after making a new high which is usually a very revealing failure.