Pork Futures: Hogs Mainly Weak
CHICAGO - Chicago Mercantile Exchange hogs finished generally weak on bearish fundamentals and October/December forward-spreading that was trumped by October longs that moved into December on the second of five days of the Goldman roll. The roll tied to the Goldman Sachs Commodity Index. Pork bellies finished weaker.Meanwhile, live cattle closed slightly mixed. Feeder cattle declined slightly.
Pork futures shuffled in and out of negative trading territory during most of the morning, fanned by initial inconsistent cash hog prices and periodic spread and roll activity.
Monstrous hog kills, dwindling calculated packer profit margins prompted selling into upswings. However, willing buyers stepped in on breaks because of October's oversold chart condition and the chance that China might be in the market for U.S. pork in the near future.
Country hog buyers anticipate cash weakness to bleed into Wednesday as processors sort through ample near-term supplies. What's more, wholesale pork's sluggish post-holiday sales pace fed into bearish notions that packers might keep a tight lid on cash prices heading into the weekend.
Nonetheless, perma-bulls point to areas of steady to firm cash values on Tuesday as a sign that some processors might need hogs soon and may ease cash price pressure before the week ends.