Pork Futures: Hogs Slide

CHICAGO - Lean hogs closed mostly lower on spreaders selling June and buying April and June/July bull spreads that hammered July but cushioned June's fall. Uneasiness going into the pig report Friday weighed on futures later in the day.

The USDA's quarterly hog report will be released at 3 p.m. EDT Friday. The following are analysts' average estimates and ranges for the top three categories in percentages of a year ago:

Pork futures spiked at the start driven by short covering. June's oversold Relative Strength Index situation and sentiments that Wednesday's sell off was overdone contributed to initial gains.

Also, a few back-month hog contracts gained slightly at the start after speculative longs fished for a bottom in the market driven by mixed overnight-CBOT corn futures.

However, rear hog month options wilted as CBOT corn traded inconsistently during the morning. Also, some hog traders were leery about significantly driving up pork futures on the eve of Friday's crucial hog report.

 

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Source: FXstreet.com

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