Pork Futures: Hogs Uneven

by 5m Editor
13 February 2008, at 10:49am

CHICAGO - Chicago Mercantile Exchange hogs closed mixed Tuesday, with February through June higher on cash support and fund buying while remaining months lagged due to depressed corn futures and spreads.

Pork bellies finished flat to mixed and the cattle complex ended weaker.

Lean hogs traded unevenly at the start with longs keyed in on Monday's pork cutout gain and Tuesday's general cash strength. Meanwhile, Chicago Board of Trade corn's downward spiral undercut far-month hogs.

Most cash hog values trended higher as the morning progressed, which, along with underlying technical support, contributed to spot February's advances. Also, February's movement tracks CME's hog index heading into the spot month's Feb. 14 expiration.

Nearby April benefited from spreading into the contract out of February, June and July. The nearby contract also made significant headway after it moved beyond prime 10- and 100-day moving average resistance barriers.

Wednesday's session will put spot February on the eve of its Thursday expiration, and nearby April closer to assuming lead-month status. Sentiments that February and April's run up Tuesday was overstated could threaten potential front-month advances Wednesday.


5m Editor