wmeubank@ocp.kcmo.com
THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
(August 19, 1997) HOGS: The last two weeks have been ugly in the hog market. All fundamentals were promising. Technically the market broke out to the upside. Then the market unexpectedly collapsed dropping almost 4 cents the past two weeks. The only news was a slight reduction in export intentions. Our feeling is that it became overbought technically and the trade was able to push the market lower which touched off sell-stops along the way. Let's avoid this one for now. Cattle was a different story. Demand and cash prices had begun to weaken. We expected the upcoming Cattle on Feed report to be bearish. Low grain prices generally means much more cattle breeding 6-12 months after. Sure enough, last Friday's cattle on feed showed almost 20% more on the feedlots than last year as well as almost 19% more placed on the feed lots that the trade expected; 118% of last year versus trade estimates of 98-102%. This market could drop much further.
Stephen Connell and William Frejlich
Added to the WWW 08-22-97
Last updated on 08-23-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com