Pork Futures: Most Hogs Gain
CHICAGO - With the exception of CME July lean hogs that were pressured by cash and the contract's expiration on Monday, other trading months landed in the green dueto give-and-take between August/October forward-spreaders and factions ofGoldman rollers.
12 July 2007
2 minute read
August's oversold chart condition also attracted buyers. And speculativepurchasers dabbled in thinly traded far-month hogs despite little or noleadership from CBOT corn.
Pork cutout's misstep on Tuesday and cash hog's drop of as much as $2.75 per hundredweight in parts of the country sent July futures on a downward path. July's situation worsened after the contract fell through the 70.25-cent 2 July low.
Country hog buyers anticipate steady to weak cash bids on Thursday.
However, speculative bulls are banking that hog futures and cash hog prices are close to bottoming out. There is also the feeling among bullish tradersthat August hogs will benefit from hot weather generated during the summer that typically stunt hog weight gains and conception rates.
What's more, calculated packer profit margins are on the mend and might motivate packers to ease cash pressure soon - depending on pork cutout'sperformance.
