ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Pork Futures: Hogs Uneven

by 5m Editor
4 March 2008, at 9:02am

CHICAGO - Chicago Mercantile Exchange hogs posted an uneven finish Monday that featured depressed cash hog prices, longs' migration out of spot April into nearby June and Chicago Board of Trade corn futures' jump.

The live cattle settlement also varied while pork bellies and feeder cattle closed down sharply.

Pork futures began the morning mixed as softer pork cutout values on Friday carried over into Monday. And, there was talk that processors would continue to pressure cash hog bids based on ample supplies and thin estimated packer profit returns.

Furthermore, initial lean hog buying interest was non-existent as bullish traders clung to the sidelines while they awaited market leadership.

Spot April and nearby June hogs continued to spiral downward as cash hog values deteriorated as the morning wore on. And, aggressive spot month liquidation, either outright or through spreads, produced another fresh contract low for spot April hogs.

Fund liquidation accelerated after June dropped below key 100-day moving average support and as spreaders sold June and bought July.

Source: FXstreet.com

5m Editor