Pork Futures: Hogs, Live Cattle Weaken

CHICAGO - Chicago Mercantile Exchange hog contracts closedmoderately lower on spot-August selling before the contract's Tuesdayexpiration, discounted cash hog prices and August/October bear spreads. Porkbellies gained on the day.
calendar icon 11 August 2007
clock icon 2 minute read

Meanwhile, live cattle settled weaker, and feeder cattle posted a mostly flatto weak finish.

Lean hogs slumped after the opening bell following Thursday's pork cutoutdrop, monstrous hog kill rates and cash hog prices in some regions that came innearly $3 per hundredweight below Thursday's returns.

At times those buying October and selling December took on funds who shiftedsome of their October long positions into December ahead of the Goldman rollperiod. The first of five days for the roll is slated to officially kickoffSept. 7 and is done in association with the Goldman Sachs Commodity Index.

A handful of traders followed an agricultural firm's advice to sell Decemberand buy February on spreads on Aug. 10.

Sporadic short covering kept futures from totally unraveling on Friday, abroker said. However, light volume was a sign of market uncertainty thatweighed on hog contracts and could be a factor on Monday, he said.

Country hog buyers foresee steady to possibly weaker cash hog bids for Mondaydue to increased hog slaughters, elusive calculated packer profit margins anduninspiring wholesale pork demand.

Source: FXSTREET.com

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.