Weekly Purcell Report

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

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Last Friday's Hogs and Pigs report only had some of the key categories about .5 percent above last year's levels, but that was enough to take a bit of the bullish bloom off this market.

Anything from December and out traded down very hard in Monday and Tuesday's sessions. We have a huge chart gap left on the December lean hog contract that is from about $55.50 all the way down toward the $54.25 high that was recorded on Monday.

Tuesday's big trading range shows a close in the middle at $53.60, and if you have short hedges placed $5 per cwt., for example, above these levels on the lean hogs, given what I see in Tuesday's session, I would take a look at buying those short hedges back.

I like the middle of the range close on Tuesday, and that reveals some signs that we are finding buyers. If you prefer to hold short positions and think about being ready to add to them on corrections, then anything back up toward the top of this big chart gap on December around $55.50 would certainly be a target.