Pork Futures: Hogs Sag

CHICAGO - Chicago Mercantile Exchange hogs closed moderately lower Wednesday on cash hog price pressure, longs shifting some of their spot-April positions into nearby-June and corn's price slide.
calendar icon 13 March 2008
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Pork bellies settled mainly weak, most live cattle contracts closed up slightly, and feeder cattle ended flat to mostly firm.

Lean hogs slipped on the open on profit taking and spot-April and nearby-June's bearish premiums to the CME hog index. Also, lower Missouri direct hog quotes and April/June bear spreads exerted added spot-month pressure.

Despite periodic short covering that briefly hoisted April and June onto positive trading ground, both contracts relapsed after they encountered 10-day moving average resistance.

Spot-April losses were compounded after the contract slipped beneath prior early-week lows that tripped sell stops. And subsequent cash hog price weakness at major direct hog outlets and Goldman roll action set further spot-month selling into motion.

The Goldman roll involves funds moving some of their spot-April long positions into nearby-June. Wednesday was the fourth of five days for the roll period that is done in association with the Goldman Sachs Commodity Index.

Source: FXstreet.com
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