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Pork Futures: Hogs Surge, Some New Highs

by 5m Editor
4 August 2007, at 1:08am

CHICAGO - Chicago Mercantile Exchange lean hog futures closedsharply higher Friday with October and December hitting new contract highswhile spot August set a 2 1/2-week high.

Live cattle closed mixed, feeders were mostly lower, and bellies finishedmixed.

Fueling the gains in lean hogs were fund buying, short-covering, speculationof additional sales possible to China, and reports of firmer cash prices beingpaid by some packers for next week.

The advance was led by most-active October, which touched limit up brieflyand gained nearly 3.9% on the day.

August closed 125 points higher at 74.37 cents per pound. October gained 290points to close at 77.60 cents. October's new high was set at 77.70 cents whileDecember's was 74.70.

Analysts and brokers said some traders were actively getting of their shortpositions early in the session, which moved the market up and tripped some buystops, or previously placed orders. Fund buying also added to the surge alongwith talk in the pits and off the floor about possible expanded export sales toChina. Efforts to confirm large export sales have been unsuccessful thus far,but analysts and traders said the speculation contributed to the bullishpsychology.

Source: FXSTREET.com

5m Editor