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COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Ste. 6, Orleans, Massachusetts
800-634-3194(November 24, 1999) HOGS: Buying based on commercial support sent the hogs to a new near-term high, hitting stops on the way. Traders see a stronger cash market ahead. While numbers have been greater than expected demand is still impressive. If McDonald's should decide to broaden their bacon promotion, it is likely bullish. Traders should watch for a buying opportunity on breaks. Some cash-connected traders tell me that there may be a "supply hole" for April and June hogs, and that a five dollar or so move could be in the offing. Traders should watch these months for signs of buying on the breaks and consider getting long.
RESISTANCE--Basis February lies near 5690, 5795.
SUPPORT--Basis February lies near 5510, 5485, 5430, 5350-5320, 5170, 5110, 5040, 4935, 4875, 4820, 4712.
RECOMMENDATION--The market is very near substantial resistance. The chart is not unattractive, but I find myself happier on the sidelines for now.
M. Steven Morgan