Weekly Purcell Report

by 5m Editor
28 April 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 April lean hogs closed on April 19 at about $64.37 as we move to the June which is now the active nearby contract, we are trading lower in the $71 to $72 range on Tuesday.

I would hold short hedges that you have placed on trend line sell signals in this market, and/or just because the prices offered were so profitable.

We have a contract high on the June of $76.47 from April 12, but I suspect we have more down in this market before we are going to try to challenge that high again.

The pattern across the past 10 days or so in the June futures looks like a bear flag to me, and I think there is a possibility we will see some down side in pork as we start to hear more talk about opening the trade channels around the world for beef which will take some of the clout off the demand-side for pork.

5m Editor