Pork Futures: Lean Hogs Closed Lower on Live Cattle's Selloff

CHICAGO - Lean hogs closed lower on live cattle's selloff, carryover from Wednesday's declines and weighty technical issues of their own. June and July hogs were the domain of bull spreaders and spot-June funds shifting into July and August in pre-Goldman Roll activity. The hog roll will also begin on Monday and officially conclude next Friday.
calendar icon 4 May 2007
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Pork futures at first struggled to find direction as well as sufficient trader participation. Pitsters weighed currently supportive fundamentals and June and July's bullish oversold chart condition against fundamental uncertainty next week and the upcoming roll.

Cash bids were generally reported steady to up as much as $2.50 per hundredweight with extended cash firmness seen for Friday. However, shrinking packer profit margins and pork cutouts' pullback late Wednesday stirred ideas that processors might fish for cash supplies on Monday with no-better-than-steady bait.

Lean hogs bled lower after surprising cattle-sector losses caught the eye of some in the pork complex who also trade cattle futures. June hogs proceeded downward after failing to hold above Wednesday's low, and July's fate was sealed when the contract could not punch through 100-day moving average resistance on the open.

"Oversold charts" were on the lips of hog market bulls prior to Thursday's open, and the same opinions are voiced heading Friday's business. Furthermore, short position holders are not expected to leave profits on the table heading into the weekend.

Source: FXSTREET.com

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