Hogs Fly To New Highs

Hogs fly to new highs: Lead month October Lean Hogs posted a new contact high of 64.95 yesterday, as supportive cash prices, fund buying, and bull spreading led to the sharp rally. Hog futures remain well below the CME 2-day lean hog index of $72.16 which may have contributed to the recent price gains. Cash market sources report brisk activity, as retailers are expected to feature pork specials for the up-coming Labor Day holiday in the US. Commodity funds are net-long Hog futures and have been adding to their positions as prices move higher. Bull spreading was active, with October/December, and October/February spreads well bid. Some traders speculate that there might be many resting buy stops above 65.00 in the October contract, which if hit could project prices to $67.00. If that were to occur, look for bulls to go "hog wild" as they book profits. Read More....