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Pork Futures: Hogs Called Mixed

by 5m Editor
17 April 2008, at 9:57am

CHICAGO - Analysts and brokers expect a mixed CME lean hog open on positive fundamentals that could clash with potential profit taking by short-term longs after Tuesday's sizable gains.

Tuesday's moderate pork cutout value increase and calls for steady-to-higher cash hog prices are bullish market indicators, a broker said.

Also, estimated pork packer profit returns sagged Tuesday but remain profitable enough to possibly keep processors interested in buying supplies at least short term, the broker said.

By the same token, future's premium to CME's hog index might deter potential longs or trigger selling into potential up ticks, another trader said. And, he said, spot-June's overbought technical situation and the notion that Tuesday's rally was overstated could at some point pressure a few hog month options.

Spot-June's 72.91-cent 40-day moving average is an area of support. The contract's 74.66-cent 100-day moving average is a resistance target.

July's 75.59-cent 100-day and 75.50-cent 40-day moving averages serve as support areas.

Source: FXstreet.com

5m Editor