Weekly Purcell Report

US - Agricultural US Commodity Market Report by Wayne D. Purcell, Agricultural and Applied Economics, Virginia Tech.
calendar icon 7 January 2004
clock icon 2 minute read


Need a Product or service?
Animal Health Products
Swine Breeders and Genetics
Pig, Hog Feed and Ingredients
Swine manure, waste and odor
Pig, Hog and Swine Books

The December Hogs and Pigs report was negative with the totals inventory up 1 percent from last year and the breeding herd only down 1 percent.

The distant lean hog futures, such as the July reacting to the 2 percent larger fall pig crop, traded down on Friday but closed near the high and traded up on Monday.

Cash hogs are looking higher as the packer margins are encouraging slaughter, and the weather is always a small issue this time of year when storms stop movement of hogs to slaughter.

There is resistance on the February chart near $57 and again at $60 across the October-November highs. I would look at short hedges on rallies to those resistance planes expecting pork to get some continued help at retail with the uncertainty in beef.

In the more distant July contract, I would watch to see if that market can take a run up toward the highs above $62 and not be in a hurry to short hedge. I like the looks of the Friday and Monday action on that chart.


© 2000 - 2025 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.