Hog futures rose to their highest prices since late spring of last year amidst indications of climbing demand while cattle futures slipped in value, Bloomberg reports.
Hog futures touched 87.5 cents per pound, the highest value since late April. The commodity slipped and was worth 86.4 cents shortly after 2 p.m., a reduction of 0.37 percent or 0.33 cents.
"Demand appears to be continuing to improve," David Kruse, president of Iowa-based CommStock Investments, told Bloomberg. "Pork exports have been strengthening."
Data from the U.S. Department of Agriculture indicated November 2010 saw U.S. exporters ship more than 406 million pounds of the commodity, which notched the highest amount since June 2008.
Cattle futures also slipped 0.42 percent, a 0.48 cent reduction to $1.1325 per pound after 2 p.m. on Wednesday, when cattle feeder futures fell .625 cents, a 0.49 percent slip to $1.27325 per pound.
Prices for wholesale beef futures also touched a two-and-a-half year high value when hitting $1.7281 per pound on Tuesday. That value represents the commodity's highest value since July 2008.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
