How High Are Hog Prices Going?

20 Oct in Blog, commodity trading, feeder cattle futures, futures broker, Lean hog futures, live cattle futures, Michael Seery, option broker, Seery Futures.com

Livestock Futures---Livestock futures this afternoon in Chicago were mixed with live cattle for the December contract finishing lower by 70 points at 127.35 a pound while still remaining under its 20 day and its 100 day moving average still pointing to lower live cattle prices. Live cattle prices are still about 600 points from its contract low which happened on April 27, 2012 at 1.20 and in my opinion I believe prices will retest those levels in the next coming weeks. Feeder cattle prices were down 50 points currently trading 150.10 a pound with major resistance at 151.25, however still very far away from the contract highs on May 21st 2012 at 164.30 before the U.S drought took its toll on corn prices sending cattle prices sharply lower. The 20 day moving average in the January feeder cattle is 149.70 only an eyelash away while the 100 day average is 152.21 which now is only 250 points from today’s levels. Lean hog futures for the February contract were up 50 points today at 85.75 a pound still hanging around recent highs due to the fact that the hog herd historically is very small and if you look at the back months in hog prices they are at all-time highs. Hog prices are above the 20 and 100 day moving averages telling me that higher prices are coming in the February contract so I’m advising traders to take advantage of any type of dip in this market and try to establish long positions remembering to always place a stop loss trying to minimize monetary losses.

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