Weekly Purcell Report

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

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

The hog market continues to be volatile. The December lean hogs contract has backed off from the early November high of $74.35 but there are no guarantees that it will not go through those highs as it has in the recent past.

The waiting game on the Japanese market opening to beef shipments continues to feed uncertainty into pork and the hog complex and exports of pork to Japan continue to offset part of the total elimination of beef shipments.

Up against these highs I would continue to want to place short hedge positions in anticipation of more difficult prices in the not distant futures with exactly ³when² just as uncertain as to when the beef shipments to Japan will start again.

5m Editor