Pork Futures: Hog losses all round
CHICAGO - Chicago Mercantile Exchange feeder cattle finished unchanged to firm and lean hogs unchanged to lower. Pork bellies posted losses during the session.
9 November 2007
3 minute read
Lean hogs closed unchanged to weak on generally lower cash hog price quotes that weighed on December. However, December/February bull spreads provided underlying December backing, but pressured February and thwarted Goldman rollers.
Pork futures sagged at the start on reversal of Thursday's late-day December/February bull spreads. Also, soft cash hog quotes and lingering concern over massive hog kills dampened initial buying enthusiasm.
Nevertheless, break-buyers found December and February's oversold Relative Strength Index conditions hard to resist. What's more, December's discount to CME's hog index, and the contract's drop to a new contract low Wednesday, lured speculative buyers.
But, spot-month upward momentum sputtered after midday direct hog prices confirmed earlier suspicions that pork processors were not interested in paying up for supplies despite impressive estimated packer profit margins.
Steady calls
Country hog buyers called for steady to weak cash hog bids for Friday as packers look to process in excess of 200,000 hogs Saturday.
Once again, December and February were oversold by day's end which could motivate speculative shoppers Thursday. And February's dip to a 58.15 new contract low Thursday might be seen by some as a buy signal Friday. Some shorts might slide money of the table Friday before the weekend. But others may hold off knowing that packers typically pressure hog bids as the industry draws closer to the Thanksgiving holiday.
Pork bellies ended lower on lean hog losses and technical resistance. December hogs closed unchanged at 51.47 cents a pound. February closed down 47 points at 58.52 cents. February pork bellies ended 100 points lower at 83.75 cents a pound, and March closed 90 points lower at 83.60 cents. Source: FXstreet.com
Pork futures sagged at the start on reversal of Thursday's late-day December/February bull spreads. Also, soft cash hog quotes and lingering concern over massive hog kills dampened initial buying enthusiasm.
Nevertheless, break-buyers found December and February's oversold Relative Strength Index conditions hard to resist. What's more, December's discount to CME's hog index, and the contract's drop to a new contract low Wednesday, lured speculative buyers.
But, spot-month upward momentum sputtered after midday direct hog prices confirmed earlier suspicions that pork processors were not interested in paying up for supplies despite impressive estimated packer profit margins.
Steady calls
Country hog buyers called for steady to weak cash hog bids for Friday as packers look to process in excess of 200,000 hogs Saturday.
Once again, December and February were oversold by day's end which could motivate speculative shoppers Thursday. And February's dip to a 58.15 new contract low Thursday might be seen by some as a buy signal Friday. Some shorts might slide money of the table Friday before the weekend. But others may hold off knowing that packers typically pressure hog bids as the industry draws closer to the Thanksgiving holiday.
Pork bellies ended lower on lean hog losses and technical resistance. December hogs closed unchanged at 51.47 cents a pound. February closed down 47 points at 58.52 cents. February pork bellies ended 100 points lower at 83.75 cents a pound, and March closed 90 points lower at 83.60 cents. Source: FXstreet.com
