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Pork Futures: Hogs Mixed

by 5m Editor
7 February 2008, at 9:44am

CHICAGO - Analysts and brokers expect CME lean hogs to open mixed on divergent fundamental factors, bearish technical issues and corn gains that could prop up deep-hog months.

Market participants could weigh Tuesday's pork cutout relapse against higher cash hog price calls that are aided by a wintry mix sliding across the middle part of the U.S., said brokers.

Spot-February could also come under liquidation pressure ahead of its Feb. 14 expiration date, a broker said.

And, the broker said, February and April's still technically overbought chart conditions, and their premiums to CME's hog index, threaten possible front-month advances.

Meanwhile, CBOT corn's rise in overnight trading could again motivate back-month speculative hog longs, a trader said.

April lean hog's 66.24-cent 100-day moving average is a major point of resistance.

Floor-trade lean hogs posted its fifth straight open interest record on Tuesday at 229,715 that succeeded Monday's 228,110 record.

Source: FXstreet.com

5m Editor