wmeubank@ocp.kcmo.com
ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(November 24, 1997) HOGS: Firm retail buying for next weeks, packer buying for Saturday slaughter estimated at 100,000, and good packer margins, gave cash markets a steady to $0.50 better trade but failed to help futures. The USDA released 14.36 mil. lbs. as their October 31 estimate for the Cold Storage report released after trade today. Estimates were for 9.25 to 13.3 mil. lbs. for October 31 versus September 30 number of 11.15 and last year 16.2 mil. lbs. It is viewed as a bearish report with news wires expecting a $0.50 to $1.00 drop for Monday's open. The research staff has found a nice seasonal trade for December hogs. Risk $250 for a $500 objective by buying between November 20 and 30 when a 5-day moving average crosses a 7-day moving average with a buy signal. Enter on the close of day in which they cross. Exit when you have $500 or on December 11, whichever comes first. USDA estimate slaughter came to 374,000 versus last year's 372,000. Hams remained firm with bellies dropping 0-1 but loins found interested buyers at 2-5 higher, and no test on butts. Lean hog futures have started a downtrend with the crossing of 10- and 20- day moving averages. Will they break out of their consolidation? Spreading dropped the nearby's and left the deferred's relatively steady. February bellies fell $0.85 and have started their trek back towards the double bottom at $68.50.
Bill Biedermann
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