Pork Futures: Hogs, Live Cattle Climb

CHICAGO - Chicago Mercantile Exchange hogs closed higher Friday on short covering, and bear spreading out of August into October, December and February trading months. That, along with cash hog price weakness, capped spot-August advances but pushed up back months. Pork bellies also ended higher.
calendar icon 28 July 2007
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Meanwhile, live cattle posted significant gains and feeders closed higher.

Residual selling and initial spot-month fund liquidation failed most lean hog contracts on the open. However, hogs firmed as shorts covered positions heading into the weekend and after October bounced off the 10-day moving average support floor.

Pork futures quickly gathered upward momentum after October became the target of bull spreads. And, live cattle's sudden cash-related surge provided added incentive for hog futures buyers.

Also, speculative distant-month hedgers were emboldened by the potential that China might buy U.S. pork later in the year and reduced hog supplies due to relatively high feed input costs, a trader said.

Country hog buyers anticipate a mixed cash hog trade on Monday as packersbalance unsatisfactory calculated profit margins against the need for supplies given lighter hog weights.

Source: FXSTREET.com
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