Pork Futures: Most Hogs Firm On Spreads, Corn Rally

CHICAGO - Chicago Mercantile Exchange hogs closed mostly firm Thursday in quiet trading on April/June and June/July bear spreading, short covering and Chicago Board of Trade corn's rally from early-session lows.
calendar icon 30 March 2007
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Meanwhile, April moved within a tight trading range influenced by uneven cash quotes.

Spot April closed up 10 points at 63.50 cents a pound.

Actively traded June closed up 17 points at 74.07 cents.

Lean hogs slipped on the open without the benefit of cash direction and anxiety over bearish board premiums to CME's hog index. However, futures gradually recovered after pork cutout's $1.33 jump on Wednesday eventually won over potential bullish traders.

Also, calculated packer profit margins for Wednesday, which showed a marked improvement relative to Tuesday's returns, put market bulls in a buying mood. And, an agricultural research firm recommended buying August lean hogs on March 29 and selling the contract on May 1.

Nevertheless, board purchasing subsided amid the realization the U.S. Department of Agriculture's quarterly hog data and prospective plantings figures will be released on Friday.

Steady to weak cash prices are expected Friday ahead of a possible 35,000-head Saturday kill. And while some in the pit concentrate on near-term cash prospects, others are already projecting ahead to next week's sales before the Good Friday/Easter holiday.

Source: FXSTREET.com

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