THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
(November 25, 1997) CATTLE: Cattle rallied on the thought that the cash market might improve. This has not been the case but funds which had been holding short positions liquidated last Thursday and Friday. We still like the short side here but we will wait for a rally to 7050 basis February. Last Friday's Cold Storage report showed 14.36 million pounds in storage. The trade estimates were between 11.5 and 12 million. This has caused the sharp break in bellies to recent lows. The hog market had attempted to test old highs above 6400 but the weakness in bellies has dragged this market down for now.
Stephen Connell and William Frejlich
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