Last week April Lean Hogs opened at $79.625 and closed the week at $79.400. For the month of February this contract opened at $89.350 and closed the month at $81.000.
For weeks now we have been hearing about drops in foreign and domestic demand for pork. The cold storage report this past Friday reflected this with an increase of frozen pork of 5% from last months. Stocks of pork bellies were up 17% from last month. The report showed 636.7 million pounds of pork in freezer warehouses which is the all time high for this time. Below are the largest pork producers for 2013. So where are all the Easter hams?
Proceed to Page 2 for the latest COT Data...
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.
Proceed to Page 3 for this week's detailed fundementals...
On the daily chart you can see this is a very strong trend down with ADX at 56.3. MACD is just riding below the signal line with no divergence and Stochastics are in oversold territory.
Click to enlarge.
On the weekly chart we see a very strong trend down and weekly Stochastics are in oversold territory. And check out how big money has pushed down hog prices with an increasing bearish posture into this past Friday’s report. This bear posture started developing at the end of January 2013 and early February 2013.
Have a prosperous trading week.
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