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Pork Futures: Lean Hog Futures Closed Higher

by 5m Editor
11 September 2007, at 9:07am

CHICAGO - Lean hog futures closed higher in all contracts after the front months traded on both sides of the ledger in the final hour. Steady to higher cash prices in the western corn belt were said to be supportive for nearby October despite some signs of weaker cash prices in the lighter hog populated eastern corn belt.

The Goldman roll, associated with the rolling of long positions held by the Goldman Sachs Commodity Index funds, accounted for about 2,600 contracts, a broker said. These were moved out of October and into December. The official roll period is the fifth through ninth business days of the calendar month preceding the front-month contract.

The floor is long February through May, a broker said. Those months led the gains on the day. February hit nearly a four-week high while April posted a 51/2-week high.

The market seems to have absorbed the speculation about China buying more pork so it will be watching the wholesale pork market and cash prices for further direction signals, analysts and brokers said.

Premiums held by futures to the current cash markets and expectations of large supplies of hogs to be available limited gains.

Source: FXSTREET.com

5m Editor