Pork Futures: Most Hogs Rise
CHICAGO - Except for the spot-July Chicago Mercantile Exchange hogcontract that was pressured by cash price weakness, other contracts closed higher on August/October bull spreading and October/December bear-positioning that capped October's advances but gave August and December added lift. Pork bellies settled mixed.Meanwhile, live cattle closed lower and feeders weak on the day.
Pork futures rose at the start fueled by Monday's pork cut out hike, short covering and Missouri direct hog's steady cash price. July and August'sover sold Relative Strength index conditions, and both contracts' modest discounts to CME's hog index, also contributed to board purchasing early on.
Funds soon joined in after August broke through 10-day moving average resistance that also tripped buy stops in the process. October also made headway after putting distance between it and 10-day moving average support.
However, July was pounded by cash hog bids in some parts of the country that came in more than $4 per hundred weight lower than Monday's sales. Additionally, August buying stalled when the contract later confronted additional technical resistance obstacles.
Nonetheless, spot-July attracted buyers around the 70.25-cent July 2 low. And, even though August slipped from morning highs, the contract didn't stray far from 10-day moving average support.
What's more, Chicago Board of Trade corn's sudden spike motivated far-month hog buyers.