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Pork Futures: Hogs Settle Weaker

by 5m Editor
8 June 2007, at 8:27am

CHICAGO - After a choppy day of trading, lean hogs ended mostly weak on generally lowernear-term cash hog bids that periodically stirred June/July bear spreads andpressed spot June to a two-month low. On the other hand, the thought thatpackers might need supplies next week at times set June/July bull spreads intomotion.

Meanwhile, July and August were the battleground for bull spreaders whoopposed fund factions that shifted some of their July long positions intoAugust on the first official day of the Goldman Roll. The roll, which willconclude June 13, is done in conjunction with the Goldman Sachs CommodityIndex.

Unsatisfactory packer profit margins could cause processors to keep a tightlid on cash prices Friday despite diminished hog slaughters.

However, it's uncertain whether reduced daily hog kills this week reflecttighter supplies or packers intentionally slowing their processing pace toconserve margins, a broker said. Whatever the case, lighter kills seem to helpcutouts, he said alluding to Wednesday's pork cutout gain.

Source: FXSTREET.com

5m Editor