ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Pork Futures: Hogs Soar

by 5m Editor
10 January 2008, at 8:37am

CHICAGO - CME hogs ended higher on short covering, isolated cash hog price firmness and the roll by February fund longs into April.

Lean hogs churned for most of the morning as speculators attempted to fish for a bottom in the market due to February and April's oversold chart conditions.

On the other hand, some in the pit sold into upswings because of plentiful hog numbers and futures' bearish premiums to CME's hog index.

Steady to $1 per hundredweight lower Missouri direct and terminal hog market quotes kept buyers on the defensive. By the same token, opportunistic longs waited to pounce as February and April approached Tuesday's contract lows.

Shorts began gradually covering previously held positions as the day wore on and as an increasing number of eager pit bulls entered the market. Bearish factions scrambled for cover, and February/April forward spreading ensued, after mostly higher hog quotes later surfaced at major direct hog outlets.

What's more, speculative shoppers were drawn to deep-hog trading months as CBOT corn contracts zeroed in on the magical $5.00-per-bushel mark. It is widely held that expensive feed costs would eat into producers' bottom lines and force them to reduce hog herds.

Source: Fxstreet.com

5m Editor