Pork Futures: Hogs Rally
CHICAGO - CME hogs ended higher on short covering, fund buying and pockets of cash hog price strength.Pork contracts trended upward on the open fueled by February and April's oversold chart situations, February/April forward positioning and the notion that February's sell off Friday was overstated.
Back-month hogs climbed, and August through 2009 February registered new contract highs, after CBOT corn opened sharply higher and quickly traded limit up for a second straight session.
Nonetheless, February and April at times sputtered because of both contracts' premiums to CME's hog index. And, longs' roll out of February into April eventually eroded front-month gains and pushed nearby-April above 10-day moving average resistance.
Country hog buyers foresee steady cash hog bids for Tuesday.
Deep-month hog traders wait to see if CBOT corn prices will be able to sustain the type of rallies experienced the past two days.