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Pork Futures: Hogs Tumble

by 5m Editor
18 April 2008, at 10:46am

CHICAGO - CME hogs settled lower on fund liquidation, sell stops and profit taking.

Lean hogs jumped at the start, ignited by short covering and further pork cutout gains on Wednesday. Generally higher cash prices and initial fund buying drove spot-June beyond 100-day moving average resistance.

Furthermore, the "psychology" of the market's upward momentum kept nearby July well above initial first-level 100-day and secondary 40-day moving average support markers.

Meanwhile, deep hog trading month options received an added boost from CBOT corn that gained in overnight trading activity. By the same token, back-month hog buying interest fizzled after CBOT corn futures ultimately faded.

Also, despite additional positive cash news, front-month hogs slumped after buying interest took a back seat to some bullish traders who rang the register a day in advance of the weekend.

"A few guys did that to beat the rush on Friday," broker said.

Source: FXstreet.com

5m Editor