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THERE WILL BE NO COMMENTS THURSDAY OR FRIDAY OF THIS WEEK.  There are no markets Thursday and grains and livestock close at noon on Friday.

CORN – Dec ‘09 Electronic
Open – $3.77 1/4, High – $3.93 3/4, Low – $3.77, Close – $3.92 Up $.16
Thoughts – Long Term (into December ‘09) – Sideways/Lower

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Dec ‘09: The corn market did a complete 180 from yesterday.  The U.S. Dollar Index made a fresh low today getting things rolling in the overnight session and it carried through to the day session as well.  If the dollar closes below 74.679 this week and next, the dollar could be in serious trouble.  If the dollar does continue its decline we should see more fund buying come into the market which will create more volatility.

For now the same rule applies for me, $4.13 1/2 is the area Dec ’09 corn has to close above before I get excited about another big move higher.  Fundamentally I’m not bullish at these levels but the outside influences have more money than those that trade fundamentals therefore they move the market.  I still have some negative setups on the weekly chart for Dec ’09 corn as long as we close below $4.03 on Friday.

Today’s trade was very thin as a lot of people who are normally in the market are taking time off for the holiday so it is easy for a market to get volatile when there are fewer participants.  The market made it back above the key level of resistance at $3.84 1/4 so this area will now become support once again.  We are still on the sideline with corn at this time and will be here until the market tells us differently.  If you have good margins in hogs purchased don’t waste time, lock in your profits and use options for opportunity if it works for you.

Bottom line: I am looking for the market to experience an early low on Friday.

Dec ‘09 Corn – Support/Resistance for 11-27-09
(R3) Resistance 3: $4.21
(R2) Resistance 2: $4.04 1/4
(R1) Resistance 1: $3.98 1/4
Today’s close: $3.92
(S1) Support 1: $3.81 1/4
(S2) Support 2: $3.70 3/4
(S3) Support 3: $3.62
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MEAL – Dec ‘09 Electronic
Open – $315.70, High – $319.90, Low – $312.50, Close – $318.00 Up $2.60
Thoughts – Long Term (into November ‘09) – Sideways/Lower

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Dec ‘09 meal: Meal started off higher then sold off but found support around noon and traded higher into the end of the day.  The Dec ’09 contract is looking like it is prepared to top but once again it is hard to make that case with the fund buying that has taken place.  The dollar dropped hard after the grain session close which should add to the trader’s appetite for commodities.  I don’t have much more to say about meal other than watch the dollar as it’s at an important level.

Technically speaking, even though the market seems balanced, the overall look of the way we have traded the last several days makes me think we are still vulnerable to a retracement to lower levels.  We are still on the sideline in meal and will continue to be for now.

Bottom line: I’m looking for the market to experience an early low on Friday.

Dec ‘09 Meal – Support/Resistance for 11-27-09
(R3) Resistance 3: $332.00
(R2) Resistance 2: $324.40
(R1) Resistance 1: $321.20
Today’s close: $318.00
(S1) Support 1: $313.60
(S2) Support 2: $309.20
(S3) Support 3: $301.60

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HOGS – Dec ‘09 GLOBEX
Open – $59.00, High – $60.075, Low – $58.825, Close – $59.425 Up $.80
Thoughts – Long Term (into December) – Neutral

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Hog margins are starting to show some good profit for the coming year.  If you would like to run a profitability crush for your operation, email us at leanhog@hurleyandassociates.com.

Dec ‘09 hogs: The Dec ’09 hogs are on a roll!  We had good volume for a day before a holiday trade.  The cash prices were once again higher at noon along with an encouraging cutout report.  I would expect both cash and cutout to be higher tonight and I believe that is what the market was trading today as well.  If the Dec ’09 contract closes above $59.225 on Friday and preferably next Friday too, we could see a test of $64.675 which is our next probable target.

Like a broken record, the dollar is a key player in higher hog prices.  If the dollar continues its weakness we could see additional buying in hogs.  This may also be a great opportunity to scale into  some sales if you can make a profit.  Pardon the pun but I wouldn’t go hog wild with sales unless you are wildly profitable.  The dollar is at a VERY key level and needs to rally back above 74.679 by next Friday otherwise we could see it start another leg lower toward 70.69.

We continue to hold our short futures long call option position in the Dec ’09 contract for now and will do so for the time being so we have downside risk protected in the market and the upside opportunity is completely open.

Bottom line: I’m looking for an early high on Friday.

Dec ‘09 Hogs – Support/Resistance for 11-27-09
(R3) Resistance 3: $61.925
(R2) Resistance 2: $60.70
(R1) Resistance 1: $60.05
Today’s close: $59.425
(S1) Support 1: $58.80
(S2) Support 2: $58.20
(S3) Support 3: $56.925
(S4) Support 4: N/A
(S5) Support 5: N/A
(S6) Support 5: N/A

Click here to view cash and cutout reports

Hurley & Associates believes positions are unique to each person’s risk bearing ability; marketing strategy; and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore, carefully consider whether such trading is suitable for you in light of your financial condition. NFA Rules require us to advise you that past performance is not indicative of future results, and there is no guarantee that your trading experience will be similar to the past performance.

NEW!!! – If you would like to receive delayed market quotes and/or weather forecast text messages click here to sign up for free.  If you have trouble signing up please email us at leanhog@hurleyandassociates.com

THERE WILL BE NO COMMENTS THURSDAY OR FRIDAY OF THIS WEEK.

Click here for Daily Prices & Fundamentals

Hog margins are starting to show some good profit for the coming year.  If you would like to run a profitability crush for your operation, email us at leanhog@hurleyandassociates.com.

CORN – Dec ‘09 Electronic
Open – $3.86, High – $3.87 1/4, Low – $3.74 1/2, Close – $3.76 Down $.11 1/4
Thoughts – Long Term (into December ‘09) – Sideways/Lower

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Dec ‘09: The corn market followed through to the downside today breaking through a key support level of $3.84 1/4 and $3.78.  With the Dec corn closing below $3.78 it builds a case that $3.59 1/4 could be tested, however, I would like to see tomorrow close below $3.78 as well.  I’m not sure if the index funds are taking a break for the holiday or if they have finished their buying in corn.  It is so tough to say because yesterday’s market suggested that all grains should have been higher judging by the outside markets but it didn’t happen.

Technically speaking I see the corn market going lower but as I’ve said before the funds have a lot to say about what direction the market moves.  $3.57 3/4 is the actual target area that Dec corn should shoot for if it makes a 50% retracement back to the $3.02 low.  We already tested $3.59 1/4 once a few weeks back so if $3.57 3/4 doesn’t hold this time we could see more selling to get the market to $3.44 1/2 and ultimately $3.02 but I’m not sure funds will let the market drop as far as $3.02.

We are still on the sideline with corn at this time and will be here until the market tells us differently.  If you have good margins in hogs purchased don’t waste, lock in your profits and use options for opportunity if it works for you.

Bottom line: I am looking for the market to experience an early low tomorrow.

Dec ‘09 Corn – Support/Resistance for 11-25-09
(R3) Resistance 3: $3.92
(R2) Resistance 2: $3.84
(R1) Resistance 1: $3.79 1/4
Today’s close: $3.76
(S1) Support 1: $3.71 1/4
(S2) Support 2: $3.66 1/2
(S3) Support 3: $3.53 3/4
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MEAL – Dec ‘09 Electronic
Open – $315.60, High – $317.30, Low – $311.20, Close – $315.40 Down $.20
Thoughts – Long Term (into November ‘09) – Sideways/Lower

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Dec ‘09 meal: Meal experienced continued weakness today but not near as much as the corn market.  The sell signal from yesterday at $319.50 is still in place but the market is acting like it is comfortable with the price level it currently at.  Yesterday we started higher and sold off and today we started lower and experienced buying at lower prices so the market seems content with its current price level for the time being.

Even though the market seems balanced the overall look of the way we have traded the last several days makes me think we are still vulnerable to a retracement to lower levels.  We are still on the sideline in meal and will continue to be for now.

Bottom line: I’m looking for the market to experience an early low tomorrow.

Dec ‘09 Meal – Support/Resistance for 11-25-09
(R3) Resistance 3: $326.80
(R2) Resistance 2: $320.70
(R1) Resistance 1: $318.00
Today’s close: $315.40
(S1) Support 1: $311.90
(S2) Support 2: $308.50
(S3) Support 3: $302.40

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HOGS – Dec ‘09 GLOBEX
Open – $58.30, High – $58.95, Low – $57.775, Close – $58.625 Up $.325
Thoughts – Long Term (into December) – Neutral

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Dec ‘09 hogs: The Dec ’09 hogs added to yesterday’s rally in quiet fashion today as volume was low due to the Thanksgiving holiday.  I spoke yesterday of a POTENTIAL island top if the market opened below yesterday’s low of $57.975 but it didn’t, it opened at $58.30 so that thought is null and void.  The market did fill the gap it left on yesterday’s open which is healthy for the market to do, however, the daily range from open to close is getting smaller as it moves higher and is a bit concerning for higher prices.

We are close to the $59.225 level of resistance I spoke of a few weeks ago but failed to reach.  The high for today was within $.275 of this resistance level and I would expect an actual test of the $59.225 at some point in the near future.  The cash market was higher this morning in IA/MN and if the cash market does continue to move higher we should see the lean hog index move higher and support the Dec ’09 prices at current levels.

In my opinion, the weak dollar has provided the hog export business a boost and hopefully the exports will grow and get this industry back on its feet.  The downside is if the dollar bottoms and moves higher we could see the exports back off but we could also see fund money leave commodities bringing both feed and hog prices down.  Another downside thought would be as soon as profits return to the industry production may increase to try and make up for lost equity which could send us right back down the path of negative returns.

We continue to hold our short futures long call option position in the Dec ’09 contract for now and will do so for the time being so we have downside risk protected in the market and the upside opportunity is completely open.

Bottom line: I’m looking for an early high tomorrow.

Dec ‘09 Hogs – Support/Resistance for 11-25-09
(R3) Resistance 3: $60.80
(R2) Resistance 2: $59.625
(R1) Resistance 1: $59.125
Today’s close: $58.625
(S1) Support 1: $57.95
(S2) Support 2: $57.275
(S3) Support 3: $56.10
(S4) Support 4: N/A
(S5) Support 5: N/A
(S6) Support 5: N/A

Click here to view cash and cutout reports

Hurley & Associates believes positions are unique to each person’s risk bearing ability; marketing strategy; and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore, carefully consider whether such trading is suitable for you in light of your financial condition. NFA Rules require us to advise you that past performance is not indicative of future results, and there is no guarantee that your trading experience will be similar to the past performance.