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Pork Futures: Hogs Seen Mixed

by 5m Editor
25 February 2008, at 9:43am

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.

Source: FXstreet.com

5m Editor