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Hogs Weaken On Cash, Roll; Bellies Strong

by 5m Editor
15 September 2006, at 11:36am

US - Chicago Mercantile Exchange lean hogs closed lower Thursday on weakening cash values, persistent fund liquidation and worrisome hog slaughters.

Funds moving some of their October long positions into December on the last official day of the Goldman Roll, which is linked to the Goldman Sachs Commodity Index, exerted additional spot-month pressure.

An estimated 9,000 spreads were implemented Thursday connected to the session's Goldman Roll activity.

Other bearish market factors included unstable pork cutouts and hog weight gains this week that imply that producers are not current in marketing their animals.

"Higher hog weights tell me that there are a lot more pigs on farms than people originally thought which will make for an interesting quarterly hog and pig report at the end of the month," a veteran hog trader said.

Source: FX Street

5m Editor