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Pork Futures: Hogs Tumble

by 5m Editor
23 June 2007, at 1:01am

CHICAGO - Lean hogs ended lower on fund liquidation, sell stops below 74.00- and73.00-cent July and August psychological support levels, and considerabletechnical weight.

Some cash bids in the direct and terminal markets came in better thanexpected. But, bulls and bears alike have adopted a dim view of the cash tradenext week based on negative calculated packer profit returns.

Bear spreading out of front months into deferred contracts was common duringmost of the session. However, late day July/October bull positioning caughtsome market participants offguard. After the dust settled, spot July ended theday nearly par with 74.00-cent psychological support.

Country hog buyers anticipate steady cash bids for Monday. Nevertheless,bearish hog traders contend that packers will continue to keep a lid on cashbids as long as processing plants operate in the red.

Meanwhile, hog market bulls contend that packer cutback at plants because ofskimpy margins will result in less pork headed into wholesale and retailchannels. Conversely, bears argue that grocers' Independence Day holiday meatneeds are practically met which could weigh on cutouts.

Source: FXSTREET.com

5m Editor