Pork Futures: Hogs End Higher

by 5m Editor
7 May 2008, at 7:12am

CHICAGO - Pork bellies closed up sharply, live cattle finished moderately higher late and feeder cattle settled flat to higher.

Chicago Mercantile Exchange lean hogs closed higher Tuesday on fund buying, cash hog price advances and June/July forward spreading that out-paced the movement of longs out of June into July and August.

Lean hogs spiked on the open spurred by carryover buying, June's slight discount to CME's hog index and Monday's pork cutout price hike. Also, nervous shorts covered previously held positions after eyeing electronic-CME hogs' steep climb in overnight trading activity.

Fund buying catapulted spot June and nearby July over major technical resistance obstacles. Both contracts remained above chart support levels with the help of midday direct live hog price gains.

Meanwhile, Chicago Board of Trade corn's steep run up laid a solid foundation beneath deferred lean hog futures throughout the session.

Country hog buyers anticipate steady to firm cash hog bids for Wednesday.

Processors may chase supplies aggressively because of brisk wholesale pork demand. Also, market-ready hogs in parts of the Midwest are tight because some producers are focusing on fieldwork rather than sorting hogs.

June lean hogs closed 155 points higher at 74.75 cents a pound, and July closed 67 points higher at 76.02 cents.

May pork bellies, which will expire on May 27, closed 195 points higher at 75.80 cents. July ended 165 points higher at 76.50 cents.

View the FXSTREET story by clicking here.

5m Editor