Pork Futures: Hog Close Higher

by 5m Editor
16 April 2008, at 8:14am

CHICAGO - Chicago Mercantile Exchange hogs settled sharply higher Tuesday on fund buying, rising cash hog prices and active short covering.

Pork bellies also ended up sharply. And, live cattle and feeder cattle futures closed higher.

Spot June and nearby July lean hogs gapped higher on the open, ignited by fund buying and nervous short covering. Monday's substantial pork cutout price hike and early cash hog price strength on Tuesday catapulted spot June over the 40-day moving average hurdle and through the 100-day moving average barrier.

June's sudden upward sprint and fund buying were also enough to pull nearby July beyond 40- and 100-day moving average resistance levels.

Front months' steep climb helped elevate deep hog month options despite electronic Chicago Board of Trade corn's initial modest gains. CBOT corn's gradual rise as the session progressed ultimately stimulated additional rear-month hog buying interest.


5m Editor