Pork Futures: Most Hogs Higher
US - Chicago Mercantile Exchange hog contracts settled mostly higher and pork bellies posted a firm finish. Lean hogs ended generally higher on short covering, fund buying and October longs rolling into December.
30 August 2007
2 minute read
Pork futures' initial spike after the opening bell was driven by spillover buying and short covering that immediately encountered selling and nearby technical resistance.
Also, October at times slipped into negative trading territory due to burdensome hog slaughters, lower cash hog quotes and sluggish wholesale pork sales. Additionally, profit taking by longs and Chicago Board of Trade corn's setback dampened lean hog buying spirit.
Nevertheless, later bouts of short covering by local traders rescued hogs from session lows. Funds joined in after October and December punched through first-level chart resistance that tripped buy stops.
Cash hog weakness is anticipated for Thursday. However, a producer back lash against lower hog bids is brewing, which could help underpin swine values inparts of the Midwest.
And although week-over-week Iowa/Southern Minnesota average weights suggests producers are not current in marketing their animals, hog furlongs believe processors may pay up for hogs next week to accommodate a huge post-holiday weekend kill.
Position-squaring by bulls and bears is expected to continue into the weekend.
October closed under the 67.99-cent 10-day and 68.22-cent 100-day moving averages. December ended over the 68.52-cent 40-day and under the 69.14-cent 20-day moving averages.
Source: FX Street
Also, October at times slipped into negative trading territory due to burdensome hog slaughters, lower cash hog quotes and sluggish wholesale pork sales. Additionally, profit taking by longs and Chicago Board of Trade corn's setback dampened lean hog buying spirit.
Nevertheless, later bouts of short covering by local traders rescued hogs from session lows. Funds joined in after October and December punched through first-level chart resistance that tripped buy stops.
Cash hog weakness is anticipated for Thursday. However, a producer back lash against lower hog bids is brewing, which could help underpin swine values inparts of the Midwest.
And although week-over-week Iowa/Southern Minnesota average weights suggests producers are not current in marketing their animals, hog furlongs believe processors may pay up for hogs next week to accommodate a huge post-holiday weekend kill.
Position-squaring by bulls and bears is expected to continue into the weekend.
October closed under the 67.99-cent 10-day and 68.22-cent 100-day moving averages. December ended over the 68.52-cent 40-day and under the 69.14-cent 20-day moving averages.
Source: FX Street
