Buying season for Lean Hog

[BREND]

September marks the start of the school year and Federal purchases, plus demand surge with Christmas hams will help to push Lean Hog prices up.

According to last week's CFTC data, hedge funds have increased net long position by 4199 contracts or 36%.

Price had rebounded from the support level of 68.00.

My proprietory trading system had signal BUY for Lean Hog.

Bought 1 lot of Lean Hog Dec08 at 69.50
Stop level at 67.80
Target level at 73.00
Value of $1 is US$400

 

[SeasonalTrader]

While Christmas is a strong demand period for cash hogs due to hams etc. , early Sept buy time may not have been ideal for December futures looking only at the seasonal tendencies. Late October buy-in normally produces better results. For the early September timeframe , Februraury hogs look like a better buy seasonally. I have attached the Dec and Feb hog seasonal charts to make it easier to see the difference.

Best regards.....

 

[nobodytrader]

Now that the grain is tanking buying a hog maybe a good idea