CHICAGO (Dow Jones)–Soft market fundamentals and follow through from
Wednesday’s Chicago Mercantile Exchange hogs’ tumble are seen pressuring
futures early Thursday.
Wednesday’s $0.70 per hundredweight wholesale pork price drop and
steady-to-weak cash hog price calls are negative market influences. However,
June and July slight discounts to CME’s lean hog index should stir speculative
buying into possible market breaks.
And, bullish speculators still cling to the notion that packers will again
spend more for hogs that are in short supply. Plus they suspect wholesale meat
demand will increase as grilling becomes more widespread.
Lean hog traders will likely adjust positions on the eve of the upcoming
Goldman roll period.