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Pork Futures: Hogs Seen Mixed

by 5m Editor
2 May 2008, at 8:00am

CHICAGO - Analysts and brokers expect CME hogs to open mixed or even firm on buying follow through, Wednesday's pork cutout price jump and electronic-CBOT corn's run up that may support far-month hog futures.

On the other hand, possible profit taking and pockets of live hog price weakness might trigger selling into potential upswings or land some contracts in negative territory, a broker said.

And, the broker said, while some may view CBOT corn's overnight rise as supportive for deferred hog contracts, others may be concerned about significant back-month hog premiums.

As is the case as their live cattle counterparts, some longs may migrate out of June into July and possibly August in advance of the upcoming Goldman roll period.

June's 72.96-cent 20-day moving average is an area of support. The contract's 74.22-cent 10-day and 74.45-cent 100-day moving averages are resistance markers.

Source: FXstreet.com

5m Editor