Weekly Purcell Report

US - Agricultural US Commodity Market Report by Wayne D. Purcell, Agricultural and Applied Economics, Virginia Tech.
calendar icon 4 June 2003
clock icon 2 minute read

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More distant lean hog contracts are making new highs, getting some help from the feeder pig numbers in last week's monthly report.

The June contract has a high up around $67.675, but the more distant contracts are making new highs. I would sell a rally to the contact high on the June.

Cash prices are showing us a weighted average of $58 to $59, and the June is showing a huge premium to cash.

I do not expect to see enough help from the spillover troubles with BSE in beef to push this market up through that high in June. On a run up to the June high, take a hard look at the profit margins you can lock in through October.

The supply side of the pork price equation is largely known out through the fall months since those hogs come from the spring feeder pig crop.

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