Bullish close in corn, hogs drop along with beans and meal.

CORN
We had bullish close in the Dec '08 corn today with the market being down $.29 1/2 at one point then mounting a rally to top out up .15 1/2 for the high. The market eventually settled down .01 3/4 for the day which is right at a very big buy signal from a candlestick perspective. Now, IF this signal is good it should be a violent move higher. The buying will come above today's high of $6.08 in the Dec '08 contract. The volume in the Dec contract on the electronic trade was 184,704 contracts which is rather large for recent weeks. That too is a good sign that the market COULD be turning. I WOULD not buy cash corn or futures without having some downside protection, just look at what soybeans did today after what looked like a good close yesterday. Today is July 23rd which is the same day the corn market bottomed last year for a harvest low. I will not be as bold to say that this is the harvest low but it sure has signs of wanting to start a move higher again. Again, use options to protect feed needs if you haven't already. I got long today at my buy point listed above but I have some puts against my futures for protection.

MEAL
Soybean meal had a makeshift double bottom today with its low of $363.50. Meal bounced off of that number which is close enough (in my opinion) to the low we had on 06-10-08 of $364.00. The market closed at a level that would suggest good support at levels lower than yesterdays low as we closed slightly above it. I don't see meal having as bullish of a close as corn nor do I have a big buy signal but it does leave a mark on the charts that would suggest stop order buying above today's high's tomorrow.

HOGS
Hogs posted a lower close today and closed lower than its previous day low for the first time since 07-07-08 in the Oct contract. Today was the sixth time in as many days that we have failed to close the market above $74.00 in the Oct contract. $74.00 is the 62% retracement level back to the old highs as I mentioned yesterday. My thoughts from yesterday still stand that if we can close Oct hogs above $74.00 on Friday we could have a shot at the old highs at $77.42. I did however sell futures close to the open this morning because of the markets failure to get a close above $74.00. Cash was a bit stronger this afternoon but the cutout came in $1.15 higher and has rallied the afternoon session around .20 cents on little to no volume.

USDA ESTIMATED PORK CARCASS CUTOUT
Based on FOB Omaha carlot pork prices and industry yields.

        Calculations for a 200 lb Pork Carcass
     53-54% lean, 0.65"-0.80" backfat at last rib
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      Total                   Today's Primal Cutout Values
Date     Loads      Carcass    Loin    Butt   Pic     Rib   Ham  Belly
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07/23        74.1      85.32  100.97   89.79  68.17  98.11 88.09  86.58
Change :                1.15    1.32    1.02   1.85  -0.06  0.69   2.00



National Direct Hog Price Comparison

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            :  National   :    Iowa     :   Western   :   Eastern
            :             :  Minnesota  :  Cornbelt   :  Cornbelt
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Base Price is the price from which no discounts are subtracted and
no premiums are added.
--------------------------------------------------------------------------
BARROWS & GILTS :   .20 hgr   :   .08 lwr   :   .13 hgr   :   .12 hgr
Negotiated      :             :             :             :
CARCASS BASIS   : 70.00-81.50 : 74.00-81.50 : 70.00-81.50 : 72.15-81.00
185 lb Base Hog :   wtd avg   :   wtd avg   :   wtd avg   :   wtd avg
Plant Delivered :    78.56    :    79.14    :    79.12    :    77.30

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 here is no guarantee that your trading experience will be similar to the past performance.