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Can this hog market go higher?

Agriculture.com Staff 03/02/2006 @ 1:47pm

Can this hog market recover more or should we grab some profit here- Didn't Sell Before But Willing To Sell Now.

The futures and the cash market have taken a major hit but there has been recovery in both of them. The basis level is relatively tight to the April futures indicating a strong cash price which is very positive at this point. The futures market has recovered to the 30% level on the front futures market which is the smallest amount which happens 75% of the time so we have reached that level of recovery.

The deferred markets have recovered to a greater percentage than the front. Seasonally the market tops before Ash Wednesday and then weakens into Easter so this is one reason to look at grabbing profits, if they are there.

This looks like a good time to buy puts or insurance contracts as we are not sure if the market has recovered as much as it should but we have a good chance of the market working lower because of the time of the year.

Can this hog market recover more or should we grab some profit here- Didn't Sell Before But Willing To Sell Now.

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