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Pork Futures: Most Hogs Gain On Short Covering, Spreading

by 5m Editor
20 March 2007, at 8:04am

CHICAGO - Chicago Mercantile Exchange hogs settled mostly firm on short covering, pockets of steady-to-better cash quotes and April/June bear spreading that at one point pushed June through major 100-day moving average resistance.

Meanwhile, April and June's oversold Relative Strength Index conditions provided underlying support. And, speculative hedgers purchased distant-month hog contracts in light numbers despite fading Chicago Board of Trade corn futures.

Spot April closed down 2 points at 64.37 cents a pound and in the low end of the trading range.

Actively-traded June closed up 5 points at 74.62 cents, below the middle of the range and under the 74.70-cent 100-day moving average.

Pork futures on Monday sagged on the open due to Friday's massive hog slaughter, that day's $0.48-cent pork cutout setback and prospective buyers who stepped back on the open to gauge near-term market direction.

Although a few hog market bulls were deterred by some terminal hog market prices that were reported down as much as $3 per hundredweight, others were later motivated by $1.38 higher cash sales at the Iowa/Southern Minnesota hog direct hog outlet.

Country hog buying sources foresee mixed cash prices on Tuesday.

Source: FXSTREET.com

5m Editor