Hogs Firm On Roll; Feb Bellies Collapse
US - Chicago Mercantile Exchange lean hogs on Monday closed firm on short covering, fund buying and funds transferring some of their October long positions into December on the second of five days of the Goldman Roll. The roll will conclude on Thursday and is done in association with rules governing the Goldman Sachs Commodity Index.There were an estimated 9,000 to 10,000 spreads implemented on Monday that were linked to the day's Goldman Roll activity.
"The roll was the big news today (Monday)," a broker said. "Everybody knew it was coming so they stood around waiting for it."
Meanwhile, locals bought October and sold December on spreads to avoid the roll. And although the bullish discount between CME's hog index and the October trading month narrowed considerably, the gap between the two remained enticing enough to lure prospective buyers.
Source: FXStreet