Pork Futures: Hogs Gain

US - Chicago Mercantile Exchange hogs settled higher Wednesday on short covering, fund buying, and October/December bear and December/February bull spreads.
calendar icon 4 October 2007
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That restricted October and February's advances but offered December added support. Pork bellies also ended higher. Meanwhile, live and feeder cattle finished lower.

Lean hogs rose after the opening bell as shorts scrambled to cover previously held positions following Tuesday's pork cutout snap back. Also, more bulls were willing to get on board, inspired by calls for pockets of cash firmness.

Pork contracts gradually ticked upward partly because of October and December's terribly oversold Relative Strength Index predicaments. And, December received additional backing from reversal of December/February bear spreads that were implemented on Tuesday.

Nonetheless, spot-October's upward momentum sputtered following unexpected weakness at major direct cash hog markets. But, October resumed its upward trajectory when more buyers than sellers entered the fray after being drawn in by the board's upward momentum.

Source: FXSTREET.com
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