National Average Agriculture Prices for Late February
Futures close mostly lower
Hog futures fell on Monday, reaching their lowest level in three weeks. May futures on the DCE fell sharply on high volume and rising open interest. Hog futures have now given up half of their gains from February’s countertrend rally and are back below all major moving averages. Open interest has gained steadily during the selloff over the past week.
The National Development and Reform Commission announced that the hog-corn price ratio was now 5.43:1 meaning the government’s price warning has been downgraded to a second-level alert.
Corn prices also dropped on Monday, trading the highest volume in a month. Corn futures have been trading into a tighter and tighter range. Monday’s trading left corn futures right above a major support level, and many technical traders are looking for a breakout in either direction.