Pork Futures: Hogs Higher On Cash, Funds Buying
CHICAGO - Chicago Mercantile Exchange lean hogs on Monday closed higher on cash strength and fund buying. The spot-April hog contract settled up slightly after expiring from the board at noon CDT. Pork bellies finished lower.
17 April 2007
2 minute read
Meanwhile, CME live cattle futures closed up slightly and feeder cattle market settled higher.
Pork futures were boosted by terminal market cash prices that jumped as much as $4 per hundredweight, pork cutouts' $1.73 bounce last Friday and fund buying that some in the pit attributed to funds covering some of their short positions.
A growing number of speculative buyers ventured into far-month hogs as CBOT corn inched its way up from session lows. April/June bear and June/August and June/October bull spreads elevated June hogs, the new spot contract, to a one-month high.
Bullish hog traders believe that calls for steady to higher cash bids for Tuesday could provide futures added lift if pork cutouts also maintain upward momentum.
June was already overbought chart-wise prior to Monday's trade and the contract's premium to CME's hog index are bearish technical considerations for Tuesday's trade.
Source: FXSTREET.com
