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ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
800-551-4626(November 19, 1999) HOGS: Pork markets finished higher as traders once again came in and bought lower trade. In fact, the higher high and lower low formed an outside day which closed higher. This is a supportive formation as it rejected cash market weakness. The news was that McDonald's will be gearing up for expanded bacon usage. For now at least, we have a troubled cash trade which by itself is not enough to concern us. Combined with today's final pork report showing losses of 95 cents however, that is another story. With those factors involved, ALDL will be putting a bearish cap on and looking for places to apply sales next week. Technically, a small gap at $52.65 the December would be ideal. Places from today's close on up to that area, are more realistic. Monthly Cold Storage was released this afternoon. The key contention was whether the belly stocks were put into non-reporting warehouses or were actually being used. If you follow the weekly CME reports, you would believe the stocks numbers to be lower than last week. This would be unusual as during the last 30 years, in only one other year did we see a November report lower than October report.
Rich Nelson