Pork Futures: Hogs Collapse

CHICAGO - Chicago Mercantile Exchange hogs closed sharply lower Friday, and April through June dropped to new contract lows, on cash hog price pressure, fund liquidation and sell stops.
calendar icon 15 March 2008
clock icon 2 minute read

Pork bellies finished lower, live cattle ended mainly weak and feeder cattle settled generally firm.

Lean hogs stumbled out of the gate on follow-through weakness and fading pork cutout values. Prospective longs observed the proceedings from a distance because of spot-April and nearby-June premiums' to CME's hog index and reduced cash price expectations.

What's more, back-month bullish hog speculators "kept their powder dry" despite modest electronic-Chicago Board of Trade corn firmness.

Spot-April and nearby-June selling increased after both contracts immediately tripped sell stops which caught the eye of funds. Also, spot-month losses mounted after midday direct cash hog markets confirmed that packers have on-hand inventory needs well in hand.

Source: FXstreet.com
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