Pork Futures: Most Hogs Slide

CHICAGO - CME hogs closed mostly lower on February/April forward spreads that weighed on April but, along areas of cash firmness, provided spot-month support. Remaining contracts settled in negative territory due to CBOT corn's setback.
calendar icon 23 January 2008
clock icon 2 minute read

Pork futures started the day mostly lower after electronic-CBOT corn posted huge losses Monday night. Monday's pork cutout slip and board premiums to CME's hog index handcuffed initial buyers.

Also, after being away from the pits for three days because of Monday's holiday, potential bullish traders stepped back on the open to gauge market direction.

While corn sealed the fate for deferred hog contracts, February eventually garnered support because of its oversold chart situation. Also, talk of cold temperatures and snow blowing across the Midwest laid a foundation beneath the spot month.

What's more, shorts covered and a few more pit-bulls were more willing buy spot-February after some cash prices came in higher.

While bullish traders cling to the notion that colder weather will keep hogs inside swine buildings for now, bears argue that those animals could later flood the market and pressure cash prices.

Source: FXstreet.com
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