Pork Futures: Most Hogs End Firm
CHICAGO - Excluding July and August Chicago Mercantile Exchangelean hog contracts, remaining months settled mostly firm on Goldman rollactivity that undercut August but landed October in positive trading territory.The roll, which began Monday and officially concluded Friday, refers to longsshifting their August positions into October. The move is done in associationwith rules governing the Goldman Sachs Commodity Index.
Meanwhile, October/December bear spreads limited October advances butelevated December. And, speculative buyers dove into distant hog months asChicago Board of Trade corn floated up from morning lows. Pork bellies closedfirm.
In contrast, live and feeder cattle contracts finished weaker.
With the exception of spot July, residual buying lifted other lean hogs onthe open. That, along with fund buying, drove August beyond 100-day movingaverage resistance on the way to a four-week high where profit-takers lurked.
July had been pressured most of the week by sentiments about where thecontract and CME's hog index would meet after July expires Monday. August'spremium to the exchange's hog index, and compared with current cash prices,made it a target for later would-be sellers.
What's more, August, which will take over as the lead month after Julyexpires Monday, came into the session overbought based on its Relative StrengthIndex chart. And, August's locked limit-up settlement on Thursday, which wasowed in part to unsubstantiated China pork-purchase rumors, delayed the shiftby August longs into October until Friday.