Weekly Purcell Report

by 5m Editor
9 July 2003, at 12:00am

US - Agricultural US Commodity Market Report by Wayne D. Purcell, Agricultural and Applied Economics, Virginia Tech.

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In the lean hogs, the August contract shows a contract high from about a month back at $69.75.

This market had backed off from that level down toward $63.50, and Monday's session reached as high as $67.50 and, I think, completed a correction of the last move down. Prices are down in Tuesday's session.

We can put a trend line under the market by connecting the April lows with the lows from last Monday. You can expect resistance below the contract high at $69.75.

I would key off the August and be active and aggressive in placing short hedges on any move back up toward the $69.50 level and better.

If we don't get that and later in the year we see a close below the uptrend line, those short hedges on a trend line sell signal will be placed at profitable levels for any but the higher cost producer.

5m Editor