Pork Futures: Hogs End Mostly Firm

CHICAGO - CME hogs ended mostly firm on covering by shorts, aggressive Goldman roll activity and speculative buyers motivated by the prospect of long-term expensive feedgrain implications.
calendar icon 11 January 2008
clock icon 2 minute read

Profiteers stepped in on the open following pork cutout's drop Wednesday and that day's steep futures climb. Prospective bulls were at first uncomfortable about buying February and April because of their bearish premiums to CME's hog index.

And, distant hog contracts' jump to new contract highs Wednesday triggered early selling Thursday.

Nevertheless, front months recovered as bargain hunters warmed to February and April's oversold chart situations. Areas of cash firmness spurred February/April bull spreads. And, back month hog traders who were "bulled up" by Wednesday's CBOT corn surge scrambled to protect their positions.

However, February deteriorated as the session wore on due to mostly lower midday direct cash hog returns, technical resistance and funds that accelerated their Goldman roll efforts.

Country hog buyers anticipate a mostly steady to possibly weak cash hog trade on Friday.

Processors are combing through supplies that were backed up on farms during the Christmas and New Year's holidays. But, the prospect of steady cash money is a sign to some that packers may need hogs next week.

Source: FXstreet.com
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.