Pork Futures: Most Hogs Climb

CHICAGO - Chicago Mercantile Exchange lean hogs ended mostly higher Monday on spreaders who bought deferred contracts and sold front positions. Also, escalating corn prices boosted several back months to new contract highs.
calendar icon 5 February 2008
clock icon 2 minute read

Pork bellies finished down sharply, most live cattle months settled firm and feeder cattle closed lower.

Lean hogs opened mostly weak on profit taking by longs after late last week's advances and traders who were uneasy about February and April's bearish premiums to CME's hog index. What's more, last Friday's jog to new contract highs gave some traders a reason to liquidate those positions on Monday.

Despite positive cash news, spot February foundered in negative territory throughout the morning ahead of the contract's Feb. 14 expiration date. Meanwhile, nearby April ticked upward as it benefited from February/April bear spreads. Also, April attracted buying interest as it approached 100-day-moving-average support.

Country hog buyers anticipate steady to firm cash bids for Tuesday partly because of more wintry weather targeted for the central U.S. by Tuesday.

Spot February's fate is tied to speculation about where the contract will settle heading into its expiration. And, another jump to new contract highs on Monday might threaten far-month lean hog gains on Tuesday.

Source: FXstreet.com
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