The Livestock Report

Hog Futures:

We finally got around to losing 82 cents on pork product last night, a seasonal situation that was a bit overdue.  After trading hog futures higher for five days, some sort of correction is conceivable today. Floor traders yesterday had a target of 9160 basis December.  If that contract should dip to the 9125 to 9160 range early in today’s session, you could try a short position on a trade into tomorrow.  Don’t plan to retire on this trade as we are trading for peanuts.  Don’t risk more than 50 points from entry.

Cattle Futures:

Cattle deliveries have stopped with a late date of October 5 not advancing.  This is going to put upside pressure on the October futures contract – it will be spread against December or February into next week.  Beef packers tried to get up money on boxed beef last week, but volume was disappointing.  I can’t get excited about any trade in cattle at present, but a December rally into the 125.00 -126.50 area would make a decent technical trade.