ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Pork Futures: Lean Hogs Ended Lower

by 5m Editor
7 July 2007, at 7:48am

CHICAGO - Lean hogs ended lower on weaker-than-anticipated direct hog market cash quotes, fund liquidation and sell stops. July/August and August/October bearspreading, along with August longs shifting into October before Monday'sGoldman roll, contributed to declines.

Pork contracts jumped at the start on spillover buying, short covering and initial fund purchases after July pierced 10-day moving average resistance.Spot-July was also aided by early-session steady to higher cash hog prices,pork cutout's hike on Thursday and board discounts to CME index.

However, July stumbled when it was unable to sustain chart support. And August recoiled after flirting with the 10-day moving average resistance level.

July suffered more losses after filling Thursday's down-side chart gap.What's more, the lead contract dropped noticeably after direct cash prices werereported as much as $2.90 per hundredweight lower in Iowa/Southern Minnesota,and the eastern and western cornbelts.

A few traders heeded an agricultural firm's advice and sold October lean hogs on July 7, which is Saturday, while others may wait to do so on Monday.

Nevertheless, the prospect that hot weather in the Midwest over the next several days stirred talk of steady to higher cash hog bids for at least thefirst half of next week.

Source: FXSTREET.com

5m Editor