Pork Futures: Hogs Mixed
CHICAGO - Analysts and brokers expect CME hogs to open mixed on buying carryover and overnight-CBOT corn strength that might clash with potential profit taking and softening fundamentals.
Some in the pit doubt whether Wednesday's board rally would extend into Thursday given April's bearish premium to CME's hog index, an analyst said. Also, he said, pork cutout's downward spiral, calls for steady to possibly weak cash bids and decaying estimated packer profit margins are negative market influences.
What's more, there is lingering uncertainty about how to trade spot-April that is far-removed from near-term fundamental factors, an analyst said.
Meanwhile, far-month hogs may respond favorably to higher electronic-CBOT corn prices, the analyst said. And, he said, there may be some residual bullish reaction following Smithfield Foods' announcement recently that the company is trimming its breeding herd.
April hog's 64.82-cent 10-day and 64.77-cent 20-day moving averages are support floors. The contract's 65.65-cent 100-day moving average is a major resistance target.
June's 78.53-cent 10-day moving average is a support area.
