Pork Futures: Most Hogs Set New Highs On Cattle Rally
CHICAGO - Chicago Mercantile Exchange hogs on Thursday settled sharply higher, and all months except spot April and May clocked new contract highs, on short covering and cattle futures' surprising limit-up drive that was triggered by bullish overnight cash and cutout developments.
9 March 2007
2 minute read
June hogs reached a 79.05-cent contract high while July's 79.50-cent price was a fresh monthly top.
Fund buying after front-month hogs punched through key resistance barriers, buy stops and initial cash support widened gains. Impressive pork cutouts amid mounting daily hog slaughters, satisfactory pork cutout values and modest Chicago Board of Trade corn advances provided added hog market lift.
Furthermore, spot-April hogs received a limit-boost from April/June bull spreading against April fund longs that attempted to roll into the June contract. The roll refers to the Goldman Roll, which was in its second of five days on Thursday, and is done in association with the Goldman Sachs Commodity Index.
There were an estimated 8,000 spreads implemented on Thursday that were linked to Goldman Roll business.
Source: FX Street
Fund buying after front-month hogs punched through key resistance barriers, buy stops and initial cash support widened gains. Impressive pork cutouts amid mounting daily hog slaughters, satisfactory pork cutout values and modest Chicago Board of Trade corn advances provided added hog market lift.
Furthermore, spot-April hogs received a limit-boost from April/June bull spreading against April fund longs that attempted to roll into the June contract. The roll refers to the Goldman Roll, which was in its second of five days on Thursday, and is done in association with the Goldman Sachs Commodity Index.
There were an estimated 8,000 spreads implemented on Thursday that were linked to Goldman Roll business.
Source: FX Street
