indications that pork supplies will grow in the coming months prompted hog futures to slip from their highest values in eight months, Bloomberg reports.
Hogs that were slaughtered in Iowa and southern Minnesota weighed 1.1 pounds more than they did one week previously, according to government data. Hog futures for April delivery have gained as much as 15 percent since late October.
"Large hog weights are a negative factor," Doug Houghton, an analyst with Brock Associates in Milwaukee, told Bloomberg. "Technical indicators suggest the market is overbought. The cash market has been relatively flat. The futures may have been getting a little ahead of themselves."
February-delivery cattle futures slipped 0.525 cents to slightly more than $1.09 per pound just before 11 a.m. on Friday in Chicago. The value for cattle reached $1.149 earlier on Thursday, which is the commodity's highest value since it began trading in 1964.
"You might see some profit-taking," Christian Mayer, a market adviser at Northstar Commodity Investments in Minneapolis, told Bloomberg. "We had a big run yesterday. Odds would favor a little bit of a setback in price."
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.