Pork Futures: Lean Hogs Higher
US - Chicago Mercantile Exchange lean hog futures closed higher in all months Thursday with the largest gains in the deferred contracts which advanced 1.6 per cent to 2.9 per cent on the day.
15 February 2008
2 minute read
Meanwhile, belly futures closed sharply lower, live cattle ended mixed but mostly firm, and feeder cattle were lower in all months.
Contributing to the gains in lean hogs were short covering as the market turned up from Wednesday's lower closes, reports of steady to firm cash prices, and sharply higher corn futures. Market analysts and traders said the gains in corn prices affected the back-month hog contracts the most amid speculation that producers will liquidate some of their breeding animals in response to higher feed costs.
Dan Vaught, analyst with A.G. Edwards and Sons in St. Louis, said some traders also may have felt the losses in lean hogs on Wednesday were overdone and turned buyers Thursday.
February lean hogs expired 25 points higher at 58.37 cents per pound. Most-active April finished 15 points higher at 64.30 cents. Rosenthal- Collins was a seller in April hogs late in the session, with no other major players listed.
