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Pork Futures: Hogs Climb

by 5m Editor
19 December 2007, at 7:23am

CHICAGO - CME hogs closed higher on short covering, February and April's oversold technical indications and February/April bear and April/June forward positioning. Spreads pumped up April but minimised February and June's gains.

Pork contracts wobbled at the start as traders digested the remainder of Monday's losses while poking at opening lows in search for a market bottom. However, more buyers than sellers entered the mix because of February and April's oversold chart situations.

By the same token, softening packer demand for supplies, with Christmas a week away, at times stifled board-buying interest. Also, the session's light trading volume reflected trader uncertainty.

Meanwhile, a handful of traders followed an agricultural firm's July lean hog buy recommendation. And, a broker said, some in the pit "jumped the gun" ahead of the firm's suggestion to buy April lean hogs on Wednesday.

Midday direct cash hog prices were quoted down $0.18 to $0.78 per hundredweight with extended weakness expected for Wednesday.

Bullish market participants believe futures are due for more technical-driven advances after recent losses that dropped some months dangerously close to previous contract lows.

Source: FXstreet.com

5m Editor