Pork Futures: Most Hogs Float Up

CHICAGO - Lean hogs closed mostly firm on June/July and June/August bear spreads that, along with bearish fundamental news, hurt June but propped up July and August. Spot-month fund selling and technical pressure also dragged on June.
calendar icon 2 June 2007
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Meanwhile, August/October bear positioning impeded August advances and, along with speculative buying interest, provided additional October support.

Thursday's $1.25 lower pork cut price, cash hogs in some sectors that dropped nearly $5 per hundredweight on Friday and continued 400,000-plus daily hog kills put traders in a selling mood at the start.

Packers operating with skimpy margins made matters worse for pit bulls who still hope cash and futures will turn the corner next week. That is when hog producers, meat processors and retailers will be operating their respective businesses during the first full workweek after the holiday.

Country hog buyers anticipate steady to weak cash hog bids on Monday, which is also what most floor sources expect. However, longs believe that producers who hold light-weight animals may retaliate in response to this week's cash beating.

June settled beneath 74.98-cent 20-day moving average resistance. And, July ended under 75.48-cent 40-day and 75.58-cent 100-day moving average thresholds.

Source: FXSTREET.com

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