Pork Futures: Hogs Surge
CHICAGO - Lean hogs closed up sharply on bullish fundamentals, short covering and fundbuying. Also, July/August bull spreaders took on funds that sporadicallyshifted some of their July positions into August on the fourth of five days ofthe Goldman Roll. The "roll" is tied to the Goldman Sachs Commodity Index.
13 June 2007
2 minute read
Pork cutout's $1.52 hike on Monday, and that day's slaughter reduction,fueled pork future's initial firmness. Also, prospective bullish traders wereinspired by slowly improving estimated packer profit returns, June's oversoldchart indicator and Iowa/Southern Minnesota direct hog prices that topped $1.57later in the session.
And, fund buying interest increased after July slowly breached key movingaverage technical resistance thresholds before settling back under the75.76-cent 100-day moving average before the close.
Country hog buyers foresee Tuesday's cash improvement spilling over intoWednesday amid shrinking hog marketings. Wednesday is also the release of thefederal government's weekly Iowa/Minnesota average hog weights for last weekthat some believe will be consistent with previous week's weights.
Pit-bulls are banking that Tuesday's sub-380,000-head hog kill will give porkcutouts an extra boost. Meanwhile, bearish traders argue that the board's rallyon Monday was "too much, too soon", and that some contracts may be subject to adownward adjustment on Wednesday.
Source: FXSTREET.com
