Pork Futures: Most Hogs Called Weak; Bellies Mixed

by 5m Editor
17 March 2007, at 1:58am

CHICAGO - Chicago Mercantile Exchange hogs on Friday are seen opening mostly weak on spillover selling, Thursday's pork cutout drop, and April and June's bearish premiums to CME's hog index.

Further pressure may be exerted by slowly fading calculated packer profit margins, huge daily hog slaughters that suggests ample supplies, and technical pressure.

Also, moderately lower overnight Chicago Board of Trade feedgrains might deter far-month hog buyers.

By the same token, expectations for generally steady cash bids - and shorts covering their positions in pre-weekend positioning fashion - may cushion declines or lift some months into positive trading territory.

Pork bellies are seen mixed on follow-through selling and March liquidation before it expires on March 27 versus possible short covering and lean hog influence.