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Pork Futures: Hogs Uneven

by 5m Editor
10 July 2007, at 8:38am

CHICAGO - Lean hogs ended mixed with July and August pestered by unexpectedly lower cash hog returns; July/August bear spreads; and August longs rolling into October also during the first of five days of the Goldman roll in the hog pit.

Spot-July was also pressured by liquidation before the contract's expiration on July 16. And, a handful of participants sold October as suggested by an agricultural firm.

Meanwhile, speculative buyers waded into far hog months in spite of CBOT corn's slight withdrawal.

Country hog buyers anticipate general cash weakness on Tuesday as packers curtail plant operating hours due to unsatisfactory margins. However, a broker said the move could boost wholesale product demand because of reduced fresh meat availability.

On Monday, hog market bulls searched for a market bottom given July and August's extremely oversold Relative Strength Index conditions. Also, bullish traders suspect that producers with light-weight hogs in their buildings may have the final word regarding this week's cash outcome.

On the other hand, on-lookers and traders with a bearish inclination toward the market regard spot-July trading as a non-event because of the contract' spending expiration. They instead choose to focus on the Goldman roll and its implications for the August and October contracts.

Source: FXSTREET.com

5m Editor