Pork Futures: Hogs Seen Mixed
CHICAGO - CME lean hogs could open mixed as market participants square positions before the weekend, according to analysts and brokers.Spot-April's bearish premium to CME's hog index, cash price pessimism and unsatisfactory calculated packer profit margins are negative spot-month influences, said brokers.
However, potential short covering, Thursday's modest pork cutout rebound may limit further losses or land some contracts in positive territory, brokers said.
Technically, April's 63.82-cent 40-day and June's 78.52-cent 10-day moving averages serves as support levels.
Those who trade deferred-month hogs may be swayed by CBOT corn's eventual direction, an analyst said. By the same token, he said, given grains' unpredictable nature, a few prospective bulls may not "jump in with both feet" with two days to think about their positions.