Pork Futures: Some Hog Contract Highs; Bellies Limit-Up
CHICAGO - Chicago Mercantile Exchange hogs closed higher Thursday on cash firmness, spreading and fund buying that pushed October through February and May to new contract highs. Commercial purchases, short covering and October's discount to CME's hog index spurred additional investment.
18 August 2006
2 minute read
October made a new contract high of 66.10 cents. December's new contract high is 63.05 cents.
By the same token, futures at times displayed noticeable negative reaction as October and December challenged key psychological resistance thresholds, nervous profit taking by commercial traders surfaced and speculators probed for a market top.
Nevertheless, additional buyers flocked around October's 65.00-cent price level, and 62.25 cents was an area of interest for December investors.
"Lean hogs' open interest keeps going up, fundamental news isn't bad and futures continue to climb, so it sounds to me like a bull market which is why this market didn't break," a broker said.
Source: FXStreet.com
By the same token, futures at times displayed noticeable negative reaction as October and December challenged key psychological resistance thresholds, nervous profit taking by commercial traders surfaced and speculators probed for a market top.
Nevertheless, additional buyers flocked around October's 65.00-cent price level, and 62.25 cents was an area of interest for December investors.
"Lean hogs' open interest keeps going up, fundamental news isn't bad and futures continue to climb, so it sounds to me like a bull market which is why this market didn't break," a broker said.
Source: FXStreet.com
