Pork Futures: Hogs Tumble On Charts
US - The Chicago Mercantile Exchange lean hog futures closed lower Tuesday on softening near-term cash outlook, fund selling and sell stops that were tripped after June and July violated key moving-average support levels. Pork bellies settled weaker ahead of CME's weekly belly storage report on Tuesday after 5 p.m. EDT (2100 GMT).
25 April 2007
2 minute read
Meanwhile, live and feeder cattle futures ended mixed.
Lean hogs began the day seemingly on solid ground due to steady-to-$1-per-hundredweight cash prices, pork cutouts' continued strong performance on Monday and Chicago Board of Trade corn's rebound on Tuesday from Monday's losses. June/July, June/August and July/August bull spreading also propped up front-month hogs.
However, summer-month hogs slowly melted from highs after June and July encountered 10-day moving average resistance and due to both contracts' bearish premiums to CME's hog index. Furthermore, traders reversed bull spreads placed earlier during the session.
And while packers at first were willing to pay up for supplies, they became less accomodating as the morning wore on and as tight profit margins commanded their attention. Country hog sources anticipate generally steady to possibly weak cash prices on Wednesday.
Technically, June and July lean hogs settled under key 20-and-40-day moving-average support levels on Tuesday, but both stopped shy of their more significant 100-day moving average chart points.
Source: FXSTREET.com
