Pork Futures: Hogs Seen Mixed

by 5m Editor
6 February 2008, at 8:44am

CHICAGO - Analysts and brokers foresee a mixed CME lean hog open on supportive fundamentals versus bearish front-month premiums to CME's hog index.

Monday's modest pork cutout snap back and steady to firm cash hog price expectations are positive market factors, a broker said. Also, treacherous weather conditions forecasted for the nation's midsection could lay a foundation beneath cash prices into the middle of the week, he said.

By the same token, recent board gains widened February and April's already bearish premiums' to CME's hog barometer, said brokers. And, they said, recent upward momentum put both contracts further into overbought technical territory.

Also, some spot-February liquidation is anticipated as the contract prepares to expire on Feb. 14, a broker said.

And, the broker said, several back-month hog options made new monthly highs on Monday that, along with softer electronic-CBOT corn quotes, could trigger profit taking on Tuesday.

April's 66.30-cent 100-day moving average serves as a primary area of support.

For a fourth straight session, floor-traded hogs posted record open interest Monday at 228,110 that surpassed last Friday's 225,456 record.


5m Editor