Weekly Purcell Report

by 5m Editor
4 February 2004, at 12:00am

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

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Hog futures are strong this week. Cash prices are getting better on a seasonal basis and I continue to expect to see some help in pork from the BSE issue in beef, especially in export sales to countries like Japan.

Across recent weeks, I counseled lifting short hedges in hogs down around $51 on the February and to carry risk exposure to the cash market. I had thought the early January highs near $60 on the February chart were reachable on a rally and had set that as my first pricing target.

We have traded above $59 this week and if we do approach the $60 level, I would look to replace short hedges on hogs out through the April contract.

5m Editor