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Pork Futures: Most Hogs Up

by 5m Editor
15 September 2007, at 11:17am

CHICAGO - Chicago Mercantile Exchange hogs finished mostly firm Friday on stronger-than-anticipated direct hog market prices that stirred October/December forward spreading against October longs that rolled into December.

Also, pre-weekend positioning included fund buying and short covering that lifted hog futures from morning lows. However, futures pulled back from session highs due to profit taking by longs and technical resistance. Pork bellies finished higher.

Meanwhile, live cattle settled moderately higher and most feeder contracts finished firm.

Lean hogs dipped on the open after profiteers stepped in following Thursday's board surge. Also, potential cattle buyers hugged the sidelines because of the lack of market clarity.

Nevertheless, pork futures gradually made their way upward as shorts began covering previously held positions. And, December attracted speculative buyers after the contract slipped beneath the 10-day moving average support level.

Bullish hog market traders were further encouraged by hog prices at major terminal markets that were reported up as much as $1.70 per hundredweight.

Country hog buyer calls for mixed cash hog prices on Monday mirrored divergent cash views among traders in the hog pit.

Bearish hog market participants contend that based on what is expected to be a record kill week for hogs, supplies remain plentiful and could pressure cash prices in parts of the Midwest next week.

Source: FXSTREET.com

5m Editor