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To: AllansAlias who wrote (46601)	12/12/2000 12:22:14 PM
From: UnBelievable	Read Replies (1) \| Respond to of 436258

PORK ALERT: Hogs mixed on cold, technicals; bellies slide When it gets cold things get icy, of course the bellies are going to slide Hog futures remained mixed at midday, with Dec still slightly higher on cold weather factors. Deferred months steadily deteriorated on technical chart weakness, caution ahead of the Dec. 28 USDA hogs and pigs survey and profit-taking. Packers' bids for hogs were higher. Packers Trading, O'Connor and Cargill were all light sellers in Feb. Bellies were also weak at midsession in very thin trade. Traders appear unwilling to establish new positions ahead of Tuesday afternoon's CME storage figure. 0930: Hog futures opened mixed with Dec the only contract higher in reaction to arctic weather conditions. Feb held near the first support level at $58.80 as a prominent local seemed to be a buyer at that area. Goldman Sachs sold some Feb as open interest in Feb is huge and many long contracts are arbitraged against that month and are due to be moved the second week in January. Cargill, Iowa Grain and Packers Trading bought Feb as Lind-Waldock, O'Connor and Goldman sold. Bellies also headed lower despite commercially connected buying by Cargill. Volume was thin. 0846: Analysts are calling CME hog futures 10-20 higher on the winter weather, with Dec, which expires Thursday, seeing the most support from the cold and snow. Packers are raising bids in an effort to entice pigs out from under their blankets. Kill cutbacks are keeping product prices firm but wholesale markets are anticipating the seasonal decline in ham quotes. Deferred futures' premiums to current cash quotes have encouraged the placement of short hedges in those contracts. Bellies also are called 10-20 higher on stronger fresh quotes amid the possibility of lighter kills. Analysts expect 2 million pounds of product moved into CME storage last week on a net basis. (Story .3232) Feb hogs are in the midst of a short-term uptrend initiated on Nov. 6, but are now testing a band of major resistance at $59.52 to $59.85, while being technically overbought. This resistance, which represents the April top and Feb. 2 contract high, is unlikely to be broken appreciably, without at least a minor countertrend correction first. (Story .424) On candle charts, a bearish shooting star reversal pattern may have formed. Open interest is also very high. Still, Feb Monday posted a new contract high and settled at its highest level. Also, the latest Bridge Market Barometer, based on trader opinions as of Thursday, fell to only a 32% bullish response. (Story .3171) At the start of the big rally begun the end of October, the bullish response on the barometer on Nov. 2 was only 29%. (Story .3109) Feb frozen Dec hogs Feb hogs bellies second resistance 58.27 60.27 72.85 first resistance 58.00 59.72 71.10 previous close 57.72 59.17 69.35 first support 57.35 58.85 67.90 second support 57.00 58.52 66.45 pivot point 57.62 59.37 69.65 10-day moving avg 55.27 57.97 64.17 20-day moving avg 54.67 57.35 63.75 40-day moving avg 53.45 55.75 62.75 9-day RSI 78% 71% 78% 0839: Hog producers as well as many buying stations across the upper U.S. Midwest are working to dig out from the snowstorm that hit the region Monday. In areas that did not receive much snow, cold temperatures and sub-zero (Fahrenheit) wind chills limited hog movement Monday and so far this morning. Buyer sources projected $0.50 to $1.00 higher hog prices, but many noted the higher bids will last only as long as the weather conditions hold down movement. (Story .3210)