Pork Futures: Hogs End Firm

by 5m Editor
31 January 2008, at 9:29am

CHICAGO - Chicago Mercantile Exchange lean hogs ended firm on supportive fundamentals, spreads and participants who squared positions on the eve of the final day of trading for January.

Pork bellies closed up sharply, live cattle posted a mostly firm settlement and feeder cattle finished higher.

Most pork futures spiked at the start ignited by spillover buying and Tuesday's significant pork cutout jump. On the other hand, back-month hogs' rise to new contract highs on Tuesday was a reason for some in the pit to sell on Wednesday.

It wasn't long before February and April followed suit as early front-month buying faded, partly because of both contracts' bearish premiums to CME's hog index. What's more, profit-taking longs slid their share of revenues off the table as they balanced their books before the last trading of the month Thursday.

However, February gradually inched upward led by generally steady-to-higher cash hog quotes. The spot-month also mustered upward momentum after it bounce off the 40-day moving average support floor.

Brutally cold temperatures already in the Midwest, with another winter storm on the horizon, enticed spreaders who bought February and sold April. Also, forward-spreaders bought April and sold June and July that provided underlying April backing but sometimes exerted moderate pressure on rear months.


5m Editor