Pork Futures: Most Hogs Gain

CHICAGO - Except spot-February Chicago Mercantile Exchange lean hogs that was pressured by cash quotes, other months settled mostly higher on short covering, spreaders and Chicago Board of Trade corn's comeback.
calendar icon 9 February 2008
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Pork bellies finished sharply higher and the cattle complex settled lower.

Lean hog contracts began mixed as spot-February and nearby-April slipped in part because of their bearish premiums' to CME's hog index. Also, February's fate was tied to liquidation before the contract's Feb. 14 expiration and generally lower cash hog values.

Meanwhile, deferred-hog months traded on the plus-side of the ledger from the start, supported by spreaders who bought June and July and sold April. And, CBOT corn's rebound after Thursday's fall motivated deep-month hog bulls.

Later, nearby-April hogs gradually inched upward after the contract neared 40-day moving average support. However, spreads and 10-day moving average resistance tempered further April advances.

Country hog buyers and floor traders are unsure about Monday's potential cash hog price direction because of the return of frigid temperatures forecasted for the Midwest over the weekend. What's more, another potentially potent winter storm is predicted to arrive in the central U.S. by late Tuesday.

Source: FXstreet.com
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