ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Pork Futures: Hogs Wilt

by 5m Editor
7 January 2008, at 8:26am

CHICAGO - CME hogs ended moderately lower, with February and April posting fresh contract lows, on eroding midday direct cash hog prices, and selling April and buying February and June on spreads.

Lean hogs rose slightly at the start due to short covering and February and April's significantly oversold chart indicators. Speculative bottom seekers also chimed in after front months made new contract lows Thursday.

But, the modest rally quickly faded after buyers realized they were widening the already bearish gap between futures and the exchange's hog index.

Also, potential longs were put off by the prospect that packers may not have to up cash hog bids next week for supplies because of animals that backed up on farms during the Christmas and New Year's holiday breaks.

Pork contracts' gradual slide eventually pressed February and April to new contract lows.

Country hog buyers expect packers to maintain cash hog price pressure on Monday.

Despite bearish cash expectations, speculative futures buyers will continue to take shots at February and April on breaks. There hope is that a fundamental catalyst would emerge and right the listing market.

Source: FXstreet.com

5m Editor