Pork Futures: Hogs Steady-Weak

CHICAGO - Lean hogs finished steady to weak on last-minute bull-spreading into July andAugust out of October and December in pre-weekend position squaring fashion.That, along with supportive fundamentals, underpinned spot-July and August butweighed on distant contracts that earlier spiked on supportive CBOT corn.
calendar icon 16 June 2007
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Pork futures jumped out of the chute spurred by follow-through buying,Thursday's pork cutout gains and early $1.50 per hundredweight higher Missouridirect cash hog quotes. Shorts covered into upticks. And, fund buying kicked asfront-months put distance between them and earlier 100-day moving averagesupport levels.

However, a trader said, the lure of recent profits was too much for pit-bullsto resist, so they began "ringing the register" as the session progressed.Also, he said, concern about July's premiums to CME's index mounted after Juneexpired on Thursday that also made longs somewhat nervous.

Next week's cash hog bids vary depending on availability, according tocountry hog buyers. Meanwhile, bullish hog traders are banking that hogs willbe in short supply next week based on this week's hog kill, which was belowlast week's level, and lighter hog weights.

Also, hog-market bulls believe packers will continue to aggressively chasehogs as long as processing animals remain profitable and pork cutouts holdtogether.

Source: FXSTREET.com

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