Pork Futures: Hogs Advance
US - Chicago Mercantile Exchange hogs closed moderately higher on short covering that was linked to participants who settled accounts on the last trading day of the year.
2 January 2008
2 minute read
Pork bellies, live cattle and feeder cattle also posted gains during the session that ended at 1 p.m. EST (1800 GMT) in preparation for Tuesday's New Year's holiday.
Lean hog speculative buyers were also attracted to February and April's oversold chart conditions. And, Friday's plunge to new contract lows gave bulls a reason to buy Monday.
Forward spreaders were willing to take on factions of pre-Goldman rollers despite lower cash hog prices.
The first of five days for the Goldman roll officially kicks off on Jan. 8 and consists of funds shifting some of their February long positions into April. The procedure is done in conjunction with the Goldman Sachs Commodity Index.
Cash hog price calls for Wednesday vary depending on post-New Year's packer needs and on-hand supplies heading into the weekend.
