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Pork Futures: Hogs Mixed

by 5m Editor
8 February 2008, at 7:46am

CHICAGO - Analysts and brokers expect CME lean hogs to open mixed or possibly weak because of market uncertainty that could cause futures to slip at the start.

"Uncertainty is never bullish," said one trader.

Another negative market factor includes spot-February selling as it prepares to expire on Feb. 14, a broker said. Also, he said, February and April's continued bearish premiums to CME's hog index could deter potential bulls.

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"Uncertainty is never bullish."

CME Futures Trader

Conversely, Wednesday's pork cutout rebound and calls for steady to firm cash hog prices fueled by Wednesday's Midwest snow storm are positive market influences, an analyst said.

On the other hand, market bears assert that cash bids could suffer after roads are cleared in areas hardest hit by the storms, which could resume the flow of hogs to processors.

Wednesday's CBOT corn's "roller-coaster" trade could put back-month hog buyers on the defensive again on Thursday, at least at the start, an analyst said.

February lean hog's 58.22-cent 10-day and 57.91-cent 40-day moving averages are support levels.

Source: FXstreet.com

5m Editor