Hogs Seen Higher On Pork Sales – CME Livestock Outlook
Monday’s pork price rebound and profit-taking by those who bet on recent Chicago Mercantile Exchange hogs losses are seen rallying futures Tuesday.
After Friday’s setback, wholesale pork values Monday jumped $1.48 per hundredweight, which pushed pork packer margins to $10.12 per head from $9.86.
And steady-to-firm cash hog price calls for Tuesday suggest packers are willing to keep a floor beneath cash to maintain a consistent flow of supplies, at least into the middle of the week.
Spot August rests on top of 81.67-cents 40-day, 81.52 20-day and 81.43 10-day moving average chart support levels. The 82.71 100-day moving average blocks August’s upward progress.
October looks to break out from between its 75.40-cents 20-day and 75.58 10-day respective moving average support and resistance boundaries.
A higher CME pork belly open is likely based on potential short-covering and Monday’s $3 per hundredweight fresh pork price climb to $125.
No belly deliveries were posted by the CME Monday against the July contract, which expires at 1 p.m. EDT Tuesday.
The exchange’s weekly belly storage report will be available Tuesday after 5 p.m. EDT.
-By Theopolis Waters, Dow Jones Newswires; 312-347-4965; theopolis.waters@dowjones.com
Source: Dow Jones Newswires
