Pork Futures: Hogs Mixed

by 5m Editor
21 April 2007, at 3:55am

CHICAGO - Lean hogs are seen opening mixed, said analsyts and brokers. Follow-through buying, gaining pork cutouts and cash optimism could provide backing. However, profit taking by longs after Thursday's rally, electronic-CBOT corn's pullback overnight and contentious June and July premiums to CME's index could weigh on futures.

Also, dwindling daily hog slaughters spur sentiments that packers may maintain at least steady cash bids over the short-term, which might prompt shorts to cover their positions, a trader said. On the other hand, there is concern that processors may trim bids because of unsatisfactory operating margins, he said.

Technically, June hogs are slowly creeping into an area of being overbought chart-wise, and July could strain to fill Wednesday's upside chart gap.

Analysts foresee a mixed pork belly open on possible buying follow through driven by reduced hog supplies that could encounter profit taking on the heels of Thursday's rally.


5m Editor