Weekly Purcell Report

by 5m Editor
10 March 2004, at 12:00am

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

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The weighted average in the cash hog market on a lean hog basis is about $62.50, and that constitutes improvement across the past two weeks.

The April lean hog contract recorded a new contract high at $63.17 on March 2 and bounced off that high to as low as $59.60 just two days later.

This week we have the very real possibility that we will move back up toward that $63 high.

If that happens, I would move up to full coverage in terms of short hedging on the March and April hogs.

Be aware you can sketch a trend line across the low on December 31 and the lows in and around February 13 and 14.

Use that as protection under the market while you are looking to sell a rally back up toward the old high.

5m Editor