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Pork Futures: Hogs End Up Sharply

by 5m Editor
24 April 2008, at 8:10am

US - Chicago Mercantile Exchange lean hogs settled sharply higher Wednesday on fund buying, fundamental support and short covering.

Pork bellies closed moderately higher while live and feeder cattle posted respectable gains.

Lean hogs surged on the open driven by Tuesday's pork cutout advances and higher cash calls. "Window dressing" on the part of a couple of major players before the end of the month hastened advances, a trader said.

Furthermore, the sharp runup in electronic-CME hogs and subsequent outcry rally caused nervous shorts to cover positions.

And, spot-June and nearby-July's steep rise lifted deferred hog contracts despite Chicago Board of Trade corn that unraveled later in the session.

Country hog buyers anticipate mostly steady to firm cash hog bids for Thursday. Processors will continue to ignore unsatisfactory calculated packer profit margins as long as pork cutouts continue to hold up, a broker said.

Source: FXstreet.com

5m Editor