Pork Futures: Hogs Sag On Cash, Roll; Bellies Down

CHICAGO - Chicago Mercantile Exchange hogs on Monday settled lower on generally depressed cash hog values, pre-determined stops below the market and funds that transferred some of their August long positions into October on the first of five days of the Goldman roll. The roll is tied to the Goldman Sachs Commodity Index.
calendar icon 11 July 2006
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There were an estimated 10,000 contracts connected with the session's roll activity.

July liquidation before it expires on July 17, fund selling and live cattle future's break also undermined pork futures. CME's deteriorating cash hog index contributed to lean hog's mostly bearish tone.

"Cash news wasn't all that great and the index dropping like a rock are good reasons why hogs were down today (Monday), but the bottom line is there was a general lack of support," a brokerage firm's trader said.

Nevertheless, speculators probing for a market bottom, short covering and earlier steady to $1 per hundredweight higher Missouri direct hog sales lifted summer hog contracts from morning lows and briefly nudged July into positive territory.

July closed 65 points lower at 70.60 cents a pound and above 70.51-cent 40-day-moving-average support. The contract slipped to a four-week low.

August ended 117 points lower at 67.55 cents and fell to a 5 1/2-week bottom.

Both trading months ended near session lows.

Source: CattleNetwork.com
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