Pork Futures: Feeders, Hogs Fall
CHICAGO - Lean hog futures closed lower in all contracts, pressured by fund sales,spread trades and short-term overbought indicators, while belly futures alsoended lower.
19 June 2007
2 minute read
Nearby, July hogs closed 75 points lower at 75.70 cents a pound, andmost-active August was down 30 at 75.12 cents.
A floor broker said the early losses were driven by fund-selling in July andAugust, while buying interest was very thin. The market acted as if there were"areas of dead air" with no or very few buy orders found to slow the earlyslide, the broker said. The early sellers included Cadent in July and RosenthalCollins and Man Financial in August.
An off-floor trader said sellers had "no resistance" in pushing the marketlower.
However, support was found just above the 10-day moving average in nearbyJuly hogs, while the 40-day line provided a floor in August.
Floor brokers and analysts said some commercial accounts along with a fewother traders became buyers near the lows, which allowed the market to move upto retrace a portion of the early losses.
Strength in the cash hog market was said to have limited losses in the leanhog pit.
Source: FXSTREET.com
