Tuesday, September 10, 2013

Weather Still Driving Hogs And Natural Gas But For How Long?

Front month lean hogs futures closed basically unchanged in Monday trade, however there was definate strength in the Dec contract.

Warmer weather across much of the US has put pressure on hog weights and as a result has hurt supplies.

The latest 8-14 outlook from the NOAA shows the bulk of the US still expecting above average temperatues.

Weather was also the key driver for natural gas with front month closing around the $3.6/mmbtu mark.

There has also been some action in the tropics again but it's not hugely concerning to the US at the moment.

Whilst we do have some heat around, I'm still not expecting it to be quite as severe given that it's late in the season.

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