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Pork Futures: Hogs Mixed

by 5m Editor
22 November 2007, at 9:54am

US - Chicago Mercantile Exchange lean hog futures closed mixed in Wednesday's holiday-shortened session, with nearby December posting a 92-point gain on ideas held by some traders that cash prices may have made a seasonal floor.

In other action, bellies were higher, live cattle mixed, and feeder cattle finished mostly higher.

Short-covering and rolling of short positions out of December into February also helped lift the front-month, which hit a one-month high and closed at its highest level since Oct. 23.

December closed at 55.75 cents per pound with a 1.7 per cent gain on the day. Most-active February was down 25 points at 62.75.

Strength in December helped pull the deferred contracts off their early-session lows and resulted in narrowly mixed closes from April through December '08.

Rich Nelson, an analyst with Allendale Inc., said some traders remain uncertain about overall demand and export sales through the balance of the year and into 2008, so the weekly and monthly storage reports and exports sales data will be closely followed.

Rosenthal-Collins was a buyer in December hogs.

Pork bellies closed higher, with February hitting a fresh three-month high after rebounding from a weaker opening. Nelson said February bellies are following the upward trend. February bellies closed 65 points higher at 93.05 cents, while March was also up 65 points at 92.35 cents.

Source: FXstreet.com

5m Editor