Weekly Purcell Report

by 5m Editor
3 November 2004, at 12:00am

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

December lean hogs may be headed for a retest of the September 24 contract high at $71.80.

The announcements that are suggesting no near term revival of beef shipments to Japan are very positive for hogs.

I would be a short hedger or replace short hedges for hogs out through the first quarter of 2005 when that December contract approaches the $71.80 high.

Expect aggressive selling on such a rally and I would place the short hedges in the December at about $71.65 to increase the chances of getting a fill on a good 'til cancelled order.

Look at selling the February and April futures at that same time.

5m Editor