Consider this bearish tendency before you jump on the bullish bandwagon in hogs.
The long-term picture for cattle and hogs is coming into focus, and it looks fairly bullish. However, the short-term bias is more neutral.
Hog futures prices rise with little warning, while cattle demand takes a breather in the wake of Hurricane Sandy.
Hogs appear to be topping, while long-term cattle prices remain bullish on fundamentals.
Short-term trades are key for hogs right now, while cattle's bigger picture may offer the best opportunity for significant gains.
Playing September bounce in hogs requires finesse, while assessing cattle fundamentals takes a long-term perspective.
With the summer holidays largely behind, investors spent the first five days of September chasing yield, re-positioning their fixed income allocations and responding to the latest export numbers from Asia.
Cash hogs are trending lower, but they are following the seasonal pattern, suggesting support going forward. Meanwhile, Japan expands demand for U.S. beef.
Hog farmers react to the sting of high corn prices, while cattle traders watch Cattle of Feed estimates for clues.
A negative chart pattern and the effects of the drought are driving hogs lower, while cattle futures are following the cash market.