Pork Futures: Hogs gain with positive signs

by 5m Editor
5 June 2007, at 8:49am

CHICAGO - Lean hogs closed flat to firm on June/July and June/August bear spreads that, along with directionless fundamentals, weighed on spot June but landed July and August onto positive ground.

Fund buying materialized after July punched through 40- and- 100-day moving average resistance barriers where eager sellers awaited. Also, June's and July's modest discounts to CME's hog index were sometimes early buying points for some bullish speculators.

However, bulls and bears alike were unsure whether hog supplies "ran low" after packers slaughtered aggressively last week to make up for Memorial Day's down time. Additionally, players were uncertain if pork cutout's only modest discount Friday was a sign of stability after significant recent losses.

As was the case Monday, country hog buyers anticipate a mixed cash trade Tuesday, which may foster continued uncertainty among pitsters. A few market bulls may take their cue from Monday's hog kill that for the first time in a week was below the 400,000-head mark.

Meanwhile, others will watch packer margins to see if they've improved enough for processors to raise cash hog bids in the days ahead.


5m Editor