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.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