Weekly Purcell Report

by 5m Editor
17 December 2003, at 12:00am

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

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Weather is disrupting moving slaughter hogs to market, but there are expectations for a very large slaughter this week.

In recent weeks, I have been suggesting buying back short hedges on this expiring December down in the $49-$50 range and doing the same on the February (somewhere around the $52 level).

Tuesday's action looks as if it may make a new low relative to recent trading levels, a function of the very heavy slaughter level we will see this week, but the cash market looks steady to high in some markets.

I would continue to buy back short hedges and expect some rally in this February lean hog futures on a seasonal basis as we move past Christmas into the early part of 2004.

5m Editor