Pork Futures: Most Hogs Stiffen
CHICAGO - Chicago Mercantile Exchange August and October hogs lagged while remaining contracts closed in positive territory Wednesday amid short covering, spreads and higher corn prices. Pork bellies finished up sharply.Meanwhile, live and feeder cattle settled weaker.
Lean hogs opened mostly firm on short covering after recent board losses and underlying technical support. Missouri direct hog firmness also generated earlyspot-month buying interest.
However, August at times sputtered following subsequent cash hog price inconsistency, ramped-up slaughter rates and liquidation - either outright or through spreads - before the contract's Aug. 14 expiration.
Also, fund selling and bear spreading out of nearby October into rear trading months yanked October below the 20-day moving average support level.
Country hog buyers and bearish hog market traders suspect processors will keep a lid on cash prices in most areas on Thursday because of tightening calculated packer profit margins.
Unexpectedly aggressive hog kill rates, despite torrid heat and humidity in parts of the Midwest, could continue to negatively impact pork cut out values because of increased fresh pork supplies.