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Pork Futures: Hogs Collapse

by 5m Editor
26 February 2008, at 9:01am

CHICAGO - Chicago Mercantile Exchange hogs settled sharply lower, with April limit down and hit a new contract low, on depressed live hog price quotes, fund selling and last Friday's cold storage numbers.

Pork bellies ended lower, most feeder cattle finished firm late and live cattle close higher.

Lean hogs dropped on the open and never looked back after pork cutout values came in softer Friday. Added pressure was exerted by lower cash hog price expectations based on ample live supplies and unsatisfactory calculated packer profit margins.

The US Department of Agriculture's monthly cold storage survey last Friday showed higher-than-expected amounts of hams and pork in the nation's freezers that weighed on April and June.

Also, April's bearish premium to CME's hog index, market uncertainty and lack of buying interest exaggerated pork future's opening fall. Spot-April's subsequent losses sank the contract to the 300-point daily price limit and a 60.50-cent new monthly low.

Source: FXstreet.com

5m Editor