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Pork Futures: Hogs Firmer

by 5m Editor
18 May 2007, at 8:34am

CHICAGO - The Chicago Mercantile Exchange lean hogs futures posted a slightly firm settlement on short covering, general cash strength and June/July and July/August bull spreading during an otherwise quiet day of trading. Pork bellies finished mostly weak.

Meanwhile, live cattle contracts ended lower while feeders closed mostly weak.

Lean hogs moved in directionless fashion throughout the morning. Bullish traders asserted that light-weight hogs would bring packers to the table before week's end.

However, bearish traders argued that processing disruptions on Wednesday at a Missouri hog packing plant would keep a lid on near-term cash prices. What's more, bears saw Wednesday's pork cutout setback as a precursor to sluggish product demand heading into the Memorial Day holiday.

The stalemate was broken after cash prices at the Iowa/Southern Minnesota hog outlet on Thursday jumped more than $2.50 per hundredweight. Country hog buyers foresee steady to higher cash values on Friday as packers book hogs for next week's slaughter.

Source: FXSTREET.com

5m Editor