ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(October 24, 1997) HOGS: Futures surge higher today, rallying limit up in the December contract near the close. The buying interest due to stronger cash and product pushed prices into large buy stop orders. Pork product was higher across the board at noon. The damp weather across the Corn Belt today did not cause a large hog run today. The early weak low of 60.02 in the December futures was a new contract low by one tick at a time when the technical indicators were signaling an extreme oversold condition. From that time short covering dominated the trade at the CME. When prices broke the 20-day moving average today the gate flew open and the short wanted to get out. Horizontal resistance crosses within ticks of today's highs. With better product news and higher futures we could expect cash to start strong on Monday. However higher bids early in the weak lead to lots of hogs by Tuesday and Wednesday. We took profits on the long December short February hog spread for a profit of $480.
Paul Georgy
Added to the WWW 10-31-97
Last updated on 11-01-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com
