Pork Futures: Hogs Sink

CHICAGO - Chicago Mercantile Exchange hogs ended lower Monday on trailing cash hog prices, technical weight and February/April bear positioning.
calendar icon 18 December 2007
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Also, pork bellies lost ground while live cattle ended up slightly and feeders closed mainly firm.

CME hogs wilted at the start on warmed-over selling and pork cutout's misstep. Uncertainty about near-term market direction kept potential longs on the defensive during February's first full day as the lead month after December expired Friday.

Nevertheless, scale-down buyers attempted to take advantage of spot-month psychological support at 59.50 cents and later around 59.25 cents. What's more, speculators were enamored with February and April's oversold Relative Strength Index situations.

However, cash hog prices at major direct hog markets that came in down more than $1 per hundredweight rattled bullish traders and fed into negative market psychology. Further board declines produced one-month February and April lows.

Country hog buyers foresee extended cash hog price weakness for Tuesday.

Last weekend's round of wintry weather may have created snags in pork production in parts of the Midwest, but not enough to force packers to pay up for animals, a trader said. Several processors likely booked hogs well in advance of the storm to avoid upping bids Monday, he said.

Source: FXstreet.com
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