Pork Futures: Hogs Slip On Spillover, Premiums, Caution

KANSAS CITY - Chicago Mercantile Exchange lean hog futures fell in all trading months Tuesday on spillover pressure from declines in the cattle complex, premiums to current cash prices, and caution ahead of Friday's quarterly hogs and pigs report.
calendar icon 28 March 2007
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April along with June through August hogs found firm support near last week's lows but lightly-traded May hit a two-month low and the deferred October and December contracts fell to six-week lows.

Nearby April hogs closed down 42 points at 63.37 cents per pound. May finished 40 lower at 73.32, while most-active June was off 47 points at 73.77.

A floor broker said hog futures were pressured from early in the session despite reports of steady to higher cash prices. The selling trimmed some of the premiums carried by the board to the cash quotes, and traders are uncertain about when a seasonal rally in the cash market will occur. Also, the continuation of large hog slaughters into this week, with 415,000 reported for Monday and 412,000 for Tuesday, is contributing to concerns of larger-than-expected supplies.

The broker said some traders are waiting for further direction signals to emerge before taking on new positions.

Source: FXSTREET.com

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