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Pork Futures: Hogs Moderately Lower

by 5m Editor
17 November 2007, at 9:38am

CHICAGO - Lean hogs closed lower on depressed midday direct cash hog quotes, front-month premiums to CME's hog index and December/February forward positioning. The spread cushioned December's fall, but exerted added February pressure.

Pork futures slipped on the open following Thursday's significant pork cutout setback.

Periodically, steady Missouri direct and terminal market hogs, and reversal of Thursday's December/February bear spreads, lifted spot-December into positive trading territory. But a few traders abandoned the spread after most major direct hog market prices later came in down more than $1 per hundredweight.

Furthermore, December and February hogs were under technical resistance stress during the day. And, several traders looked ahead to next week when cash bids may suffer as processors throttle down for the holiday.

Fewer traders are also expected to be on the floor next week, which might stir market volatility.

December hogs closed down 27 points at 52.52 cents a pound, and February closed 50 points lower at 60.40 cents.

Source: FXSTREET.com

5m Editor