Weekly Purcell Report

by 5m Editor
15 September 2004, at 12:00am

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

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I would hold short hedges or get them established in hogs with the lean hog contact for October back up toward $68. Demand is good and is being helped by the BSE talk and the continued shut down of beef shipments to Japan, but we may see the slaughter level for the week climb above 2 million head.

It will be hard to hold current prices as the daily slaughter levels continue to run high through October and November. I doubt whether we can hold a $70 cash price average and if that is right, there is no reason for the October to rally from the $68 level as we move toward the first of October.

5m Editor