Pork Futures: Hogs Mixed; Bellies Bow Before Storage Data
CHICAGO - Chicago Mercantile Exchange hogs on Tuesday settled mixed in choppy trading action that was stirred by April/June bull spreading, April longs rolling into deferred contracts and further cash erosion.Also, prospective buyers roamed the sidelines during most of the session to escape being "chopped up" in the unstable market. Chicago Board of Trade corn's earlier supportive distant-month hog influence dissipated after feedgrains slowly eased from overnight electronic trading highs.
Nevertheless, periodic short covering, April and June's oversold Relative Strength Index conditions and speculative hedging cushioned declines and helped land some contracts on the plus side of the board.
Spot April ended unchanged at 65.00 cents a pound which served as a key psychological support. Actively-traded June finished up 10 points at 75.57 cents. Both contracts settled within Monday's highs and lows.
Nervous shorts covered positions on the heels of Monday's $0.89 pork cutout rebound and initial stability in outside commodity/equity markets prior to hog future's open.
However, pork buyer confidence was shaken after terminal and Missouri direct hogs lost as much as $2 per hundredweight of their value based on Monday's sales.
Source: FXSTREET.com