Pork Futures: Hogs Mostly Firm On Short Covering, Spreads

CHICAGO - Chicago Mercantile Exchange hogs closed mostly firm Wednesday on short covering and April/June bull and June/July bear spreading.
calendar icon 29 March 2007
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Lower cash prices and April and June's bearish premiums to CME's hog index sparked selling into upticks. On the other hand, oversold front-month charts and Chicago Board of Trade corn's initial spike stirred buying on breaks.

Spot April closed up 2 points at 63.40 cents a pound.

Actively traded June closed up 12 points at 73.90 cents.

Lean hogs slipped at the start due to follow-through selling, lack of buying interest and terminal hog market prices that were down as much as $1.00 per hundredweight.

April and June drifted downward until April buyers stepped in near 63.00-cent psychological support. June also bounced off Tuesday's 73.50-cent low.

Pork cutouts on Tuesday rose $0.14 compared with Monday, but prospective longs remain nervous that retail buying will diminish as wholesalers purchase pork product hand-to-mouth heading into the Good Friday/Easter holiday.

Source: FXSTREET.com

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