Pork Futures: Lean Hogs Mostly Up

KANSAS CITY - Floor brokers and traders said there were no major features in the hog futures pit Monday. April was held in check by its premium to the CME's two-day lean hog cash index.
calendar icon 10 April 2007
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Traders await more extensive action in the cash markets Tuesday when all plants resume slaughter operations after seven of the bigger plants were dark on Monday.

April through June did not move outside of Thursday's respective ranges in Monday's session while July through December hit fresh 3 1/2-week highs. Technical support was seen in April and May at their respective 20-day moving averages.

A floor broker also said spreading - long in the back months and short the June contract - contributed to the gains in August through December months. The most-active or favorite spread of the day was said to be long October, short June.

Also helping underpin May and the summer contracts are expectations of seasonal strength in cash prices, but since the board already has a healthy premium built into those prices, traders may be reluctant to put more money into those months until they see what cash prices will do over the next few weeks, a broker said.

Source: FXSTREET.com

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