Pork Futures: Lean Hogs Closed Flat to Firm

CHICAGO - Lean hogs closed flat to firm, with June ending weaker, July unchanged and remaining contracts moderately higher. Lower cash prices and bear-spreading pressured spot-June but lifted July from a four-month low. Speculative buyers waded into far months, particularly October through 2008 April, because of their board discounts compared with other trading months.
calendar icon 24 May 2007
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The absence of clear market leadership and anxiety heading into the long Memorial Day holiday weekend put a negative spin on futures at the start. Midday Iowa/Southern Minnesota direct hog prices, which were down $2.39 per hundredweight, pulled futures down even more.

Nonetheless, scale-down buyers were motivated by lighter hog weights and the notion that packers will return to the table with better month in hand soon after the holiday.

In the eyes of some in the hog pit, Thursday is the equivalent of a Friday session given the abbreviated livestock trading schedule this Friday and Monday's day off. Shorts may attempt to claim profits on Thursday and longs, who view resent declines as a buying opportunity, might "put on" a few positions before the holiday, a trader said.

Technically, June is poised to challenge 74.83-cent 20-day moving average resistance. Meanwhile, August is perched above the 92.18-cent 20-and-40-day moving average convergence level.

Source: FXSTREET.com

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