Hog Futures Buoyed by Fresh Demand

Hog futures spiked higher today on the outlook of improving demand for domestic pork.  This speculation is said to be encouraging meat companies to purchase more hogs for slaughter.

Official data for supply, demand, and price reports from our USDA are still unavailable after two weeks because of the government shutdown, but according to an east-coast provider of agricultural news and data, it is speculated processors this week will probably handle 0.4% less hogs than last week with a foreseeable pick-up in demand.

Hog prices should find some good support at current price  levels for a little while,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current hog futures situation.  Riordan added,Demand has been on the increase and should be able to continue to absorb the recent  increase in supplies.”

Hog futures trend is technically still “up,” albeit sideways for almost the last month and a half.  We are long hog futures from early in today’s trading session, and came within 10 points (or “four ticks”) from realizing our initial target at 8850.

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