Hog Futures Rallying on Slower Slaughter Rate

Hog futures spiked to their highest price in over two weeks on the signs of a reduced amount of domestic hogs being brought to slaughter.  Hog futures reversed their earlier gains, only closing 7.5 points higher for the day.

USDA data revealed the number of hogs being brought to slaughter, just yesterday, had declined 1.7% from a week earlier.  Also realized yesterday, hog prices for immediate delivery increased 2.6% which is the biggest gain since mid-September.

Hog (futures) are oversold and we might see a technical rally higher without any concrete fundamental news out there,” says Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current hog futures situation

Hog futures trend is still technically down.  I am inclined to see a little higher rally for hog futures, but view it as a selling opportunity.

I wish you a warm & wonderful Thanksgiving Day celebration tomorrow.

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