Pork Futures: Hogs Mostly Firm
CHICAGO - Analysts and brokers anticipate a mostly firm CME lean hog open on spillover short covering, improving pork cutout values and steady-to-better cash hog price expectations.
28 January 2008
2 minute read
Also, overnight-CBOT corn gains may continue to generate far-month lean hog buying interest, a broker said.
Conversely, the broker said, profit-taking by longs after Thursday's upturn and futures' bearish premiums to CME's hog index might minimize advances or drop some contracts into negative territory. Some credit colder temperatures in the Midwest for slowing hog marketings which underpinned cash prices.
However, relief from bitter cold over the next few days could thaw hog shipments that, along with dwindling estimated packer margins, might pressure cash bids early next week, said analysts and brokers.
February hog's are poised to test 56.10-cent 20-day moving average resistance. The contract's 54.94-cent 100-day moving average is an area of support.
April's 62.20-cent 10-day moving average is a resistance target.
An analyst called pork bellies mixed.
