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Pork Futures: Hogs Climb

by 5m Editor
6 December 2007, at 9:35am

CHICAGO - Chicago Mercantile Exchange lean hogs closed higher Wednesday on cash hog price strength, short covering and fund buying.

Meanwhile, February pork bellies, the only contract traded during the session, ended higher. Live cattle posted moderate losses and feeder cattle settled lower.

CME hogs opened mixed as participants weighed Tuesday's sell-off and board premiums against that day's pork-cutout rise and calls for no worse than steady money for cash hogs.

Futures trended higher fueled by Missouri direct and terminal hog quotes that came in steady to up as much as $2 per hundredweight and sent shorts running for cover.

Additionally, bullish traders are banking that another winter storm forecasted for the Midwest will slow transportation of supplies to processing plants.

Nevertheless, selling into upswings was common, especially after futures put more bearish distance between them and CME's hog barometer. Also, December traders at times bailed because of the contract's Dec. 14 expiration.

At one point December slipped below positive trading territory due selling by local traders.

Source: FXstreet.com

5m Editor