Allan Bentley, Sales, Genesus Inc.
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Futures have slipped with over $10/cwt. My chart-watching friends have told me the fact that a gap has occurred after the last report and we are now back at pre-report levels, is not a good sign for futures. My good friend Bob Lingenfelter uses a charting program that is as old as he is. He says December hogs according to his charts have support at $71.50, if that does not hold we are heading for a target of $62.45.
As far as cash hogs, there are so many different formula prices out there that it’s really tough to say what cash hogs really are doing. There is a $20/ cut difference in the meat depending on which formula you are on. What I am witnessing is packers gave notice to what they perceive as their higher-cost pigs. I think they offered some new take or leave it formula. Guess what? I know many producers that left it. Other packers have picked them up. So we are seeing some changes in who your dance partner is. New relationships will form and we will see who is right and wrong. I’m betting on the cash market staying strong.
Categorised in: Featured News, Global Markets
This post was written by Genesus