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Pork Futures: Hogs Uneven

by 5m Editor
21 January 2008, at 8:47am

CHICAGO - Chicago Mercantile Exchange hogs posted a two-tied settlement Friday. February through June closed down on the day while remaining months settled flat to firm.

Pork bellies closed mixed, live cattle finished mostly firm and feeder cattle ended higher.

Lean hogs began the session unevenly with February and April gaining on short covering and spot-February's oversold Relative Strength Index condition.

Meanwhile, other hog month options slumped as short-term longs snatched profits after August through 2009 February bolted to new contract highs Thursday.

However, front-months' climb soon sputtered after February buying dried up that ultimately caused the contract to lose initial 10-day moving average support. Also, April withdrew after it encountered 20-day moving average resistance.

Furthermore, February and April's bearish premiums' to CME's hog index diluted early buying interest.

February periodically danced slightly above board due to steady Missouri direct and terminal market cash hog bids. But, the spot-month began to grind lower after being pressured by flat to softer midday direct hog quotes.

Source: FXstreet.com

5m Editor