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Pork Futures: Hogs Fall

by 5m Editor
25 October 2007, at 9:48am

CHICAGO - Chicago Mercantile Exchange live cattle ended sharply lower on fund selling, sell stops and cash caution. Feeder cattle ended lower. Meanwhile, lean hogs and pork bellies posted sizable losses during the session.

Live cattle stumbled out of the chute as prospective buyers stepped back on the open which allowed spillover selling to dominate. That, along with October liquidation in perpetration for the contract's Oct. 31 expiration, caused the spot month to violate key moving average support levels.

Meanwhile, December came under additional stress from December/October forward spreads. Also, December was the sell side of December/April bear spreads.

Because of fund participation in the livestock markets, some floor traders pointed to turmoil in the equities sector as a negative outside cattle influence.

Wednesday's board decline and softening boxed beef prices present a threat to this week's cash outcome. Nonetheless, perma-bulls remain confident that smaller showlists this week will prevail and bring at least steady money for cash this week.

Locals bought December and sold October outright. Fimat was among October buyers. ADM and Rosenthal sold December.

Source: FXSTREET.com

5m Editor