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Pork Futures: Hogs Expected Mixed, Bellies Flat-Up 30 Pts

by 5m Editor
24 March 2007, at 2:51am

CHICAGO - Chicago Mercantile Exchange hogs on Friday are seen opening mixed on various fundamental and technical factors as well as position squaring before the weekend.

Fundamentally, futures may be supported by carryover buying, generally steady cash ideas and Chicago Board of Trade corn's slight up tick overnight. Also, Thursday's federal government monthly cold storage belly and pork stocks results are viewed as supportive for related futures.

By the same token, the board may be pressured by nervous longs taking profits after Thursday's rally, Thursday's pork cutout lapse and sentiments that storage outcomes are typically absorbed by market soon after the opening bell.

Technically, April and June's bullish oversold Relative Strength Index conditions could clash with both contracts' still bearish premiums to CME's hog barometer. What's more, April may again struggle to fill Wednesday's chart gap while June copes with 100-day moving average resistance.

Pork bellies are seen steady to up 30 points on follow-through buying, Thursday's supportive monthly belly storage figure and steady fresh belly prices on Thursday at $94 per hundredweight.

Nevertheless, longs sliding money off the table before the weekend and March liquidation before it expires on March 27 may cap possible advances.

Source: FXSTREET.com

5m Editor