Pork Futures: Lean Hog Futures Closed Lower

CHICAGO - Lean hog futures closed lower in all contracts for the second time in as many days. Pressured by additional fund selling, concerns that hog supplies will remain larger than earlier projected, spread trading and speculation that the cash market strength seen so far this week will soon fade.
calendar icon 20 June 2007
clock icon 2 minute read

A floor broker said buying interest was light. Many traders are treadingcautiously due to widespread ideas that cash hog prices will not maintain thefirm trend for long unless wholesale pork prices make significant gains aswell.

With only two weeks remaining before the Independence Day holiday, extendedstrength in pork prices isn't likely, a broker-analyst said, and "the floor isnervous about buying at these levels, especially with slaughter running so farabove a year ago.

An off-floor trader summed up the day's action by saying there are "too manyhogs."

Sharp gains in cash prices and chart support provided by the moving averageshelped July and August rally from their lows hit earlier in the session. Abroker said with this week's cash gains, packer prices have now moved above thenearby July contract, "so the premium is gone."

Source: FXSTREET.com

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