|
|
 |
|
| |
|
Lean Hogs & Pork Bellies Analysis
from
Paragon Investments:
LEAN HOGS:
Fundamental: Lean Hogs closed mixed today, as contracts were rolled out
of the June and into the July and August contracts. Funds were buyers today in
the August contract due to technical strength that was caused by yesterday’s
close. Bellies were soft all day following yesterday’s report from the USDA.
We continue to see a slowdown on the retail side for the pork complex, which is
giving us a slightly bearish bias. Pork cutout values were a $0.39 lower at
$70.99 on a total of 124.6 loads reported sold.
Technical: The August contract broke through resistance today and looks
to be heading higher. We noted some spreading today (selling July buying
August) and will monitor the effects of that on the technicals. We also will be
closely watching the $66.80 mark, which could spark technical buying.
Positions:
5-31-01: We sold 1 July Lean Hog today @ $66.55 and will risk a close above
$67.12
Recommendations:
NONE
For more information contact
Paragon Investments,
or call 888-452-8751. |
|
|
|
Cattle Analysis
from
Paragon Investments:
CATTLE:
Fundamental: The cattle complex opened much higher than expected this
morning with the help of fund buying. Live cattle gapped higher on the open and
took out Tuesday’s highs very quickly. The 2001 feeder cattle contracts all
made new contract highs this morning. A few thousand cattle were sold early
this morning in Texas at $77 and this added support to the cattle, then the
trade seemed to come to a stand still in the feed yards. An account that was
tied to a packer bought 1500 October live cattle early. The large Northwest
U.S. feeder was reported to have sold an estimated 1000 April live cattle and
bought April 76 puts. Large orders were also noted in the buying of August live
cattle 74 & 75 calls and sold 72 puts. Volume was very good today at an
estimated 28,828 contracts in the live cattle. This afternoon the USDA reported
the light choice cutout value at $132.38 up $0.12 on movement of 151 loads and
the light select cutout value at $113.71 down $1.14 on movement of 178 loads.
The CME 7-day average cash settlement price on feeder steers was up $0.87 at
$88.96. The last 6 sessions has seen the index good up a total $1.56.
Technical: The technical strength in the live cattle and feeders is
very hard to miss. With the live cattle trading very close to their contract
highs and the 2001 feeder contracts all making new contract highs it is hard to
ignore the upside. The entire complex is very technically overbought and due
for a correction. On the weekly live cattle chart the June cattle must trade
over 75.57 to get above the 3-month down trendline.
Positions:
05-22-01: Short 1 August Feeder @ 91.35 / Risk to 92.50 SCO / Offset at 89.50
Recommendations:
NONE
For more information contact
Paragon Investments,
or call 888-452-8751. |
top
© 2000 theFinancials.com
& Paragon Investments
All rights reserved.
Republication or redistribution of this content is expressly prohibited without
the prior written consent of theFinancials.com & Paragon Investments.
DISCLAIMER: Commentary and market information is provided for
informational purposes only. The information contained in this report is
gathered from reputable sources and is not intended to be used as investment
advice. theFinancials.com assumes no responsibility or liability from gains or
losses incurred by the information herein contained.
|
|
