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Pork Futures: Hogs Expected Mixed

by 5m Editor
14 January 2008, at 8:40am

CHICAGO - Analysts and brokers foresee a mixed CME hog open on position squaring before the weekend and the shift by February fund longs into April during the continuation of the Goldman roll.

Negative market influences include Thursday's pork cutout drop and February and April premiums' to CME's hog index, said brokers. What's more, February and April have technical issues to overcome, they said.

February lean hog's 56.81-cent and April's 62.71-cent 10-day moving averages are resistance thresholds.

By the same token generally steady, rather than lower, cash hog price expectations may inspire speculative bulls, a trader said. Impressive calculated packer profit margins are a possitive market factor, he said.

And, February and April's oversold technical indictors may lure prospective buyers, the trader said. Also, he said, overnight CBOT corn's steep climb could stimulate far-month hog buying interest.

An analyst called pork bellies mixed to mostly firm on potential short covering and February's oversold chart condition that could out-pace potential follow-through selling.

Source: FXstreet.com

5m Editor