Pork Futures: Lean Hogs Closed Weaker on Local Selling
CHICAGO - Lean hogs closed weaker on local selling, sell stops and CBOT corn losses. Worries about June's and July's bearish premiums to CME's hog index also weighed on futures despite mostly higher cash prices, Friday's pork cutout gain and fund-buying on breaks.
24 April 2007
2 minute read
June/July and June/October bear, and June/August and July/August bull spreading were common throughout the otherwise lackluster session.
"We're stuck in a rut until futures break hard or cash comes up to meet the board," a broker said. "The floor is expecting firmer cash bids on Tuesday, but beyond that it's a toss-up."
Hog market bears suspect that processors will cut back plant operating hours to conserve tight though gradually improving margins, a move that could slow hog marketings and pressure cash bids.
However, bullish traders argue that given already limited hog availability, packers may maintain at least steady money for cash hogs the remainder of the week to keep pace with strong retail demand for meat for grilling.
Technically, June and July live hogs settled above 40- and 20-day moving average convergence levels on Monday.
Source: FXSTREET.com
