Pork Futures: Hogs Called Mixed
CHICAGO - Analysts and brokers expect a mixed CME hog open on mildly supportive fundamentals that could clash with notions that February and April's run ups on Tuesday were unwarranted.
14 February 2008
2 minute read
Spot-February, which is at a mildly bearish premium to CME's hog barometer, may also come under selling on the eve of the contract's Feb. 14 expiration, a broker said.
On the other hand, the broker said, Tuesday's pork cutout rise and pockets of cash hog price firmness might provide downside spot-month backing.
Meanwhile, nearby-April is conflicted by its significantly bearish premium to CME's hog index and technical issues, said brokers. The contract is wedged between 65.85-cent 10-day moving average support and 65.91-cent 100-day moving average resistance.
And, CBOT corn's persistent losses may continue to pressure deferred-hog months, at least at the start, a analsyt said. Back months have lost so much ground lately that a few people may look at the situation as a buying opportunity, he said.
An analyst called pork bellies mixed to possibly weaker on 14 deliveries posted by CME on Tuesday, March's overbought Relative Strength Index condition and Tuesday's CME weekly belly storage results.
