These articles are brought to you by:
ING DERIVATIVES CLEARING
209 South LaSalle, Chicago, Illinois
(October 3, 1995) HOGS: DEMAND BEAR INDEED–We've long chronicled the effect of the Japanese demand problems, while other we're stuck on their demand potential, and the effect has been longer term. Briefly recapping: The lost consumption of the summer on artificially high prices induced by waiting for Japan has rippled into fall just as we get into higher numbers seasonally. Even the advent of national pork month failed to get much pay...There was little incentive to do so. Hence, the pork markets still trying to find some are where they can “buy” their way back into consumption. Kills are about in line with the pig crop and weights remain record large (though a continuous deal and a better fit for the packer). Larger live supplies and insufficient demand for it combines with expected heavy cattle numbers; with large broilers competition; with heavy hams stocks in the freezer. We find it possible under the current domestic demand; under the current Japanese demand (price back to the time Taiwan found their disease!); under the current ample meat supply, cash hog prices may have to drop to the low $40's (under 60.00 lean) from the current near $50.00 price area.
John W. Kleist
Sagamore Partners, Inc.
Added to the WWW 10-03-97
Last updated on 10-04-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com
