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ALLENDALE, INC.

4506 Prime Parkway,
McHenry, Illinois
(May 5, 1997) HOGS: Cash markets were softer on Friday and futures retraced some of Thursday's gains. Rain throughout the Corn Belt should cause an increase in movement over the weekend. Therefore cash hogs are called lower for Monday. The newswire's reasons for hog futures selling off today are quite feeble. This same news was available yesterday when the lean hogs were up sharply. However fund buying and buy stops drove this market up on Thursday. Today the funds were quiet which left a void in buying interest. The charts have a spike high on April 24, which could provide a contract high until early June or until export demand really surfaces. We believe the futures are not for the weak of heart, and options could offer some great opportunities.

Paul Georgy

Consensus National Futures and Financial On Line Index
Livestock Index

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