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Pork Futures: Hogs Uneven

by 5m Editor
1 March 2008, at 7:30pm

CHICAGO - Chicago Mercantile Exchange hogs posted an uneven finish with April through July pressured by longs who rolled out of April into June as well as profit taking. Other rear-month hog options surged on periodic Chicago Board of Trade corn gains.

Pork bellies and feeder cattle closed lower while live cattle ended mixed.

Lean hogs opened lower on profit taking by longs, Thursday's continued pork cutout slide and cash hog prices that were reported weaker than some in the pit had anticipated. Furthermore, pre-Goldman roll activity contributed to spot-April's overall bearish mood.

The Goldman roll consists of funds moving some of their spot-April long positions into nearby-June that is tied to the Goldman Sachs Commodity Index. The first of five days for the roll will officially start March 7.

Additionally, deferred hog contracts began the morning on a negative note amid steady to weak electronic-CBOT corn futures.

Front-month hog losses mounted when fund liquidation and sell stops kicked in after April slipped beneath Wednesday's 60.25-cent low. June lost further ground after the contract dropped beneath the 100-day moving average support level.

Source: FXstreet.com

5m Editor