Pork Futures: Hogs Rise Slightly
CHICAGO - Lean hogs posted modest gains on areas of higher cash hog prices, short covering and October longs' shift into December in advance of the Goldman roll. 10 September is the first of five days for the roll period that is tied to theGoldman Sachs Commodity Index.
31 August 2007
2 minute read
Position evening prior to the holiday weekend also included December/April forward spreads.
Hog futures slipped at the start amid buyer jitters, cash uncertainty and Wednesday's significant pork cutout drop. What's more, potential bulls stepped back on the open due to worrisome hog kills and increased hog weights.
However, futures gradually made their way higher after some cash hog prices in the Midwest came in better than expected. Also, light fund buying surfaced after October broke through nearby 40-day moving average technical resistance.
Floor traders anticipate a mixed cash hog trade on Friday. That could further encourage bullish traders who for most of the week were taunted by lower hog prices.
And although bearish traders are predicting a "tsunami" of hogs crashing into the market in the weeks to come, short-term bulls anticipate packers raising bids next week to satisfy what could be a huge post-holiday weekend kill.
