wmeubank@ocp.kcmo.com
R.J. O'BRIEN & ASSOCIATES, INC.
555 W. Jackson Blvd., Chicago, Illinois
(December 18, 1997) HOGS: SUPPLY AND DEMAND BEAR–As the February hogs bounce around contract lows once again, we're reminded that each technical bounce preceding them were all false starts. There was talk of Japan interest, talk of Russian interest, talk of retail interest etc., problem was (is), demand either wasn't there are was short-lived. No extra Japan business (they have their own financial problems) and Russia bought 22 mln pounds of trimmings. With USDA credits of course. No big deal. Cash tops flipped under the $40.00 mark in many areas and along with high weights, there's plenty o' pork around. We've maintained a trading affair approach to the hogs down here, but as the year ends we're alert for a bounce. Kills should decline 100- 200,000 head after the first and under similar circumstances, there's been room for a $3.00-$5.00 rally. Perhaps the pig crop will change out minds.
John W. Kleist
Commodity Consultant
Hogs
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Cattle
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