Pork Futures: Hogs Lose Ground

by 5m Editor
19 May 2007, at 12:40pm

CHICAGO - Lean hogs closed weak on selling by commercials and locals amid uneven cash quotes. Also, there was speculation that cash and pork cutouts might suffer as packers and wholesale meat buyers purchase supplies sparingly as the Memorial Day holiday nears.

Furthermore, pork futures immediately took back initial cash-induced gains after June and July moving average support gave way and CBOT corn sank from overnight highs. Hog traders who also dabble in cattle also exercised caution before the federal government's cattle numbers this afternoon.

Country hog buyers called for steady to higher cash bids on Monday that backed bullish floor notions that tight supplies might keep a floor beneath cash.

Market bears assert that producers could "flood" the market with hogs soon to avoid possible price discounts the week before the holiday. Also, bears maintain that historically, retailers tend to buy pork product hand-to-mouth heading into the holiday period.

Spot-June hogs settled in line with the 40-day moving average, and August ended above 10-day moving average support.

5m Editor