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Pork Future: Hogs End Lower

by 5m Editor
22 April 2008, at 8:19am

CHICAGO - Chicago Mercantile Exchange lean hogs closed lower Monday on fund liquidation, bear spreads and Chicago Board of Trade corn's price plunge.

Pork bellies ended down sharply, most live cattle contracts settled weak and feeder cattle finished steady to higher.

Lean hogs slipped at the start on market uncertainty, profit taking and jitters about front-month premiums to CME's hog index. Spot-June's overbought Relative Strength Index condition repelled prospective longs.

Also, some bullish traders observed the proceedings from afar because of negative calculated pork processor profit margins that some believe could gnaw at cash prices as the week progresses. What's more, the 100-day moving average acted as a formidable area of resistance for June and July throughout the session.

Additionally, a few bullish players exercised caution ahead of the U.S. Department of Agriculture's monthly cold storage report on Monday at 3 p.m. EDT.

Source: FXstreet.com

5m Editor