wmeubank@ocp.kcmo.com
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6, Orleans, Massachusetts
(October 10, 1997) HOGS: SHORT TERM–Cash remains weak, with December recently hitting the lowest prices since the beginning of the year. Uncertainty prevails in the livestock pits. Rain implies heavier marketings at a time when the market is already on the defensive, and marketings are already heavier than expected. Fund selling has also been a factor. Taiwan reported greater hog numbers than expected which was bearish.
RESISTANCE–Resistance basis December lies near 6272, 6300, 6400, 6555-6600, 6670-6705, 6770, and near 6820.
SUPPORT–Support basis December lies near 6040- 6080.
RECOMMENDATION–Conservative traders should be on the sidelines waiting for a signs of bottoming. Aggressive short-term traders might buy December hogs near 6100 with stops of 50-100 points, looking for an eventual rally to the 6500 area. Option traders could consider buying December calls at current levels.
M. Steven Morgan
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