Weekly Purcell Report

by 5m Editor
28 July 2004, at 12:00am

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

The lean hogs futures are advancing again with strong Tuesday closes, but the upside will be constrained by emerging seasonal patterns that show much higher daily slaughter levels as we move toward October.

The August lean hog futures will run into selling near the contract high of $78.25 and that might be the time to look at October and December futures and consider placing or replacing short hedges.

On the December, it is clear we have an uptrend line with the May 28 low at $54.97 connected to lows across the past week. One approach is to wait until we see a close below that trend line and then hedge the hogs for September through December in the October and December lean hog futures.

5m Editor