Pork Futures: Hogs Climb

CHICAGO - Chicago Mercantile Exchange lean hogs ended higher, with some deep months hitting new monthly tops, on fundamental backing, spreaders who bought June and sold April, and sporadic corn future spikes.
calendar icon 4 February 2008
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Pork bellies closed flat to mixed, live cattle finished uneven and feeder cattle closed up slightly.

Pork futures jumped on the open, which caused February and April to gap above key moving-average resistance levels. Front-month advances were fueled by climbing pork-cutout values and rough winter weather in the central region of the country that helped foster no-worse-than-steady hog price bids.

However, February and April's upward momentum momentarily fizzled due to pre-weekend profit taking and both contracts' bearish premiums to CME's hog index. Also, February and April's overbought Relative Strength Index conditions made longs think twice about pushing the board up much further.

Nonetheless, futures later resumed their upward trek spurred by short covering, spotty fund buying and modest cash hog price advances at most major direct hog markets.

Country hog buyers anticipate steady to firm cash hog prices for Monday as processors prep for this weekend's kill and after parts of the nation's midsection dig out from significant snowfalls.

Source: FXstreet.com
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