Bye Bye BLTs: How Much Lower Can Hogs Go as Peak Grilling Season Ends?

October lean hog futures (HEV25) present a selling opportunity on more price weakness.

See on the daily bar chart for October lean hog futures that prices are starting to trend down as the bulls have last power over the last two weeks.

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Fundamentally, the peak outdoor grilling season and the bacon, lettuce and tomato (BLT) sandwich season are winding down and hog slaughter levels tend to start to increase in late summer.

A move in October lean hog futures prices below chart support at $88.50 would give the bears fresh power and it would also become a selling opportunity. The downside price objective would be $80.00, or below. Technical resistance, for which to place a protective buy stop just above, is located at $92.00.www.barchart.com

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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