Market analysts and traders said short covering and deeply oversold market conditions contributed to the late rebound to bring hogs off new contract lows hit in December through May.

Most-active and front-month December closed off 7 points at 54.52 cents per pound. February hogs ended down 17 points at 61.47. Their new contract lows were hit earlier at 54.15 and 60.80 cents, respectively.

Concerns of continued very large slaughter-ready supplies and slipping wholesale pork prices again limited the buying interest and allowed only modest gains early in the session before the market sold off.

Rich Nelson, analyst with Allendale Inc. in McHenry, Ill., said many traders are taking the position that until proven otherwise, they see the trend as bearish on the huge supplies.

A floor broker said there was some speculation near the open that wholesale pork prices might stabilize soon and begin to recover, which contributed to modest gains in futures in the early going. However, reports of surplus offerings and possible further weakness in pork prices filtered into the pit, and the buying interest dried up.

Later in the session, after news lows were hit in December through May, spread trades along with some short covering and buying in December by J.P. Morgan and in April by Man Financial helped pull futures back up to limit losses in the front months.