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Pork Futures: Lean Hogs Closed Mixed

by 5m Editor
1 June 2007, at 8:26am

CHICAGO - Lean hogs closed mixed with a firm undertone. June came under cash, pork cutout and hog slaughter pressure that fueled June/July bear spreading. Meanwhile, CBOT corn advances earlier in the day piqued the interest of far-month hog buyers.

According to a hog broker, packers are "putting the pedal to the metal" kill-wise to clean up hogs that were backed up over the Memorial Day holiday and conserve thin calculated profit margins. The result, he said, was Thursday's pork cutout that fell "more than a buck" because pork is now readily available to retailers at lower prices.

Country hog buyers anticipate further cash hog price weakness on Friday. However, a few bullish hog traders cling to hope that cash and futures are near a bottom this week and that processors will need supplies to fill next week's slaughter schedule.

More position-squaring by bulls and bears is also anticipated on Friday, the first trading day of June. Some market observers believe Friday's trade will set the tone for the spot-June hog contract as it approaches the trading month's June 14 expiration.

Source: FXSTREET.com

5m Editor