ING DERIVATIVES CLEARING

209 South LaSalle, Chicago, Illinois

(October 16, 1997) HOGS: Two weeks nearly straight down in the live market with some terminals posting $44.00 tops. The demand bear was thrown more numbers and higher weights (record as usual but unusually heavy). The “blame” comes from two sources, one of which we know well: Japan. They didn't take the pork the market expected; they had more in their coolers than expected. They took more Danish pork than expected. The second reason: it seems our retailers are content to keep margins high and consequently not getting the extra kick out of demand as befits the sharp losses in the products. With heavier kills on the horizon, with heavier weights, with plentiful cattle around, we put our downside objective in the December hogs at the $60.00 to possibly the $58.00 area (live roughly about $40.00).

John W. Kleist

Commodity Consulting

Hogs
ALLENDALE, INC. | COMMODITY REVIEW AND OUTLOOK
GLOBAL ASSET MANAGEMENT | ING DERIVATIVES CLEARING
Feeder Cattle
COMMODITY REVIEW AND OUTLOOK
Cattle
ALLENDALE, INC. | GLOBAL ASSET MANAGEMENT | COMMODITY REVIEW AND OUTLOOK
COMMODITY RESOURCE CORPORATION | ING DERIVATIVES CLEARING
TAURUS COMMODITIES | THE WINDY CITY TRADER
Livestock | Consensus National Futures and Financial On Line Index

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