CHICAGO (Dow Jones)–Conflicting market fundamentals could yield mixed
Chicago Mercantile Exchange hogs results at the start Wednesday.
Wholesale pork price’s $0.88 per hundredweight relapse Tuesday that slashed
pork packer margins is a negative market influence. But bullish traders may be
moved by steady-to-firm cash hog calls driven by tight supplies.
Furthermore, the shrunken price difference between June and July hogs
compared with CME’s hog index should provide underlying front-month support.
The average weight of hogs in Iowa/southern Minnesota for last week was
269.9 pounds, up .6 pound from the week before and a 0.4-pound bump compared to
a year ago, according to U.S. government weekly data.
The week-over-week hog weight increase in the upper Midwest was not enough
to gauge producer marketings in the area, a CME hog trader said.
Technically, the June hog contract Tuesday settled inline with its
84.95-cents 20-day moving average. The 83.07 40-day moving average is June’s
next support level.