Pork Futures: Hogs Fall

CHICAGO - Lean hogs ended lower on steady-to-weak cash hog prices, Thursday's pork cutout's discount and fading calculated packer profit returns. Liquidation by fund and commercial participants exerted additional board pressure that also tripped sell stops.
calendar icon 22 September 2007
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Residual selling rapped pork futures immediately after the opening bell.Futures then fed on themselves because of "air" beneath the market,institutional selling and more sellers than buyers, a broker said.

Furthermore, a few hog traders played it close to the vest ahead of USDA's monthly cold storage report that will be released at 3 p.m. EDT (1900 GMT).

Analysts' average projection for U.S. belly stocks during August is 18.2million pounds based a range from 16.5 million to 20.1 million pounds. Ham holdings were forecast from 143.5 million to 146.0 million pounds. And, last month's total pork inventory was estimated around 448.4 million pounds.

Profiteers also deflated far-hog months that on Thursday were pumped up by sharply higher CBOT corn contracts.

However, hog futures at times lifted off session lows as shorts covered previously held positions before the weekend. What's more, October and December's extremely oversold chart conditions wooed speculative bargain hunters.

Nonetheless, bearish attitudes hound lean hogs going into early next week.Hogs supplies remain plentiful at heavier weights, packer profit margins eyered ink and calls are for weaker cash for Monday.

Source: FXSTREET.com
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