Pork Futures: Cash, Funds Drop Hogs; Feb Bellies Dn
CHICAGO - Chicago Mercantile Exchange hogs closed lower Friday on withering cash hog values, fund selling and sell stops. Active October/December bear spreads, both contracts' mildly overbought Relative Strength Index signals and this week's ramped-up hog slaughter pressured futures throughout the session.
26 August 2006
2 minute read
However, October's discount to CME's hog index, sporadic scale-down speculative bargain hunting and a few traders who followed an agricultural firm's seasonal October buy recommendation cushioned declines.
"The bloom is off the rose in the hog market as we get closer to the Labor Day holiday when packer and wholesale demand tends to back off a bit," a veteran livestock trader said. "But, it's still hard to ignore the October discount and packers usually put up their biggest kill the weekend after the holiday, so they may need a few hogs then."
October closed 140 points lower at 65.02 cents a pound. December ended down 57 points at 62.02 cents.
Source: FXStreet.com
"The bloom is off the rose in the hog market as we get closer to the Labor Day holiday when packer and wholesale demand tends to back off a bit," a veteran livestock trader said. "But, it's still hard to ignore the October discount and packers usually put up their biggest kill the weekend after the holiday, so they may need a few hogs then."
October closed 140 points lower at 65.02 cents a pound. December ended down 57 points at 62.02 cents.
Source: FXStreet.com
