Pork Futures: Hogs Slide
CHICAGO - Chicago Mercantile Exchange lean hogs closed lower Wednesday on general cash hog price pressure and December/February bull and February/April bear spreads. Front-month spread positioning minimized December and April's declines but exerted significant February pressure.
13 December 2007
2 minute read
Pork bellies settled sharply lower and live and feeder cattle contracts lost ground during the session.
Lean hogs wobbled at the start due to December and February's bearish premiums to CME's hog index, Tuesday's slight pork-cutout weakness and uneven cash hog price expectations.
December liquidation before the contract's Dec. 14 expiration date pressured the spot month. By the same token, speculation about where the contract would settle on Friday at times put a floor beneath December futures.
Nonetheless, midday direct hog prices came in lower, which dampened spot-December buying enthusiasm. And, February's bearish premium to CME's hog barometer appeared to gain greater significance as the day wore on and given December's looming expiration.
Furthermore, February selling intensified after it slipped beneath key moving average support levels which set off light fund selling and sell stops.
Country hog buyers foresee steady to possibly weak cash bids for Thursday.
