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Pork Futures: Hogs Tumble

by 5m Editor
2 November 2007, at 7:57am

CHICAGO - Chicago Mercantile Exchange live cattle finished lower Thursday on tepid wholesale beef movement, fed cattle jitters and December fund long's migration into February ahead of the Goldman roll.

The first of five days for the roll, which is tied to the Goldman Sachs Commodity Index, will officially begin Nov. 7.

Feeder cattle ended mostly weak while lean hogs and pork bellies gave up considerable ground.

Live cattle actually began the morning upbeat on short covering and December and February's oversold Relative Strength Index conditions.

Nonetheless, future's upward momentum hit a snag because of Wednesday's boxed beef retreat. Buyers also became nervous about this week's cash sales given recent market declines and spotty $90 per hundredweight live-basis sales in Nebraska.

Lean hog's sudden drop to new contract lows tugged at their cattle counterparts. And, more sellers than buyers surfaced after the U.S. Department of Agriculture's midday boxed beef wire showed choice cuts down another $1.21 a pound and select items off $0.23.

Equity market fallout and turmoil in other commodity sectors gave cattle futures yet another negative spin because of the heavy involvement of fund traders.

Source: FXstreet.com

5m Editor