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Pork Futures: Lean Hogs Ended Higher On Cash Hog Prices

by 5m Editor
20 April 2007, at 8:34am

CHICAGO - Lean hogs ended higher on cash hog prices that leaped nearly $3 per hundredweight in the direct hog trade, Wednesday's $1.33 pork cutout hike and diminishing daily hog kills this week.

However, pork complex participants will keep an eye on overnight pork cutouts. Some in the pit disregarded Wednesday's cutout increase because it was driven primarily by fresh bellies rather than the more highly-valued loins.

Shorts also covered positions on Thursday. And, June/July, June/August and July/August helped provide front-month upward momentum that at times was slowed because of June and July's bearish premiums to CME's hog index.

However, a trader argued that future's premiums to the exchange's hog index may be "overrated" because two months remain before the June contract expires, which will give the market plenty of time to adjust.

Packers again are expected to raise cash bids on Friday, but the level of those increases may be limited because of tight profit margins.

Source: FXSTREET.com

5m Editor