Weekly Purcell Report

Weekly Purcell Agricultural Commodity Market Report Wayne D. Purcell Agricultural and Applied Economics Virginia Tech

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The July lean hog contract is trading above the old high at $78.60 this week, but I would not be quick to buy back any short hedges.

The action by a large packer to reduce the slaughter week injects some uncertainty into this market, and the July contract is already consistent with the $78 cash market.

It may be prudent here to hold short hedge protection even if the market can make new highs given the actions by the largest hog slaughterer and a major player in pork in the U.S. and around the world.