Pork Futures: Lean Hogs Close Mixed But Some Optimism Forecast
CHICAGO - Lean hogs closed mixed on June/July and July/August bull spreading against a handful of spot-month June fund longs rolling into July and August. Despite lower cash hog quotes on Thursday, market bulls remain confident that cash's downward spiral may be near an end soon based on tighter hog marketings.
11 May 2007
2 minute read
Far-month speculative hog buying was virtually non-existent because of CBOT corn's lower trade. And rather than be "shoved around" by lean hog's erratic behavior on Thursday because of the Goldman Roll, several prospective bullish players contend they'll wait until after the roll to work positions.
Country hog buyer sources foresee steady-to-weak cash bids from processors on Friday before Saturday's estimated 18,000-head Saturday slaughter. Packers are thought to have on-hand supply needs met into the weekend and possibly on Monday.
Traders with a longer-term view of the market believe June and July lean hogs will likely gain ground next week without the pressure of the Goldman Roll. On the other hand, bearish traders argue that packers may only purchase live supplies to accommodate current slaughter levels, which could pressure cash prices.
Source: FXSTREET.com
