Tue 22 Jan 2013 14:29:54 CT
February hogs saw choppy to higher trade for much of the session and closed moderately higher on the day. The market pushed lower early in the session today to push to a 3-session low before seeing a recovery bounce to trade slightly higher on the day into the mid-session. Talk of seasonal support for the cash market and the pork product market over the near-term helped to provide support on the early sell-off. In addition, ideas that the cold weather in the upper mid-west early this week could limit the marketings pace helped to support the market. A lack of a premium of futures to cash was also seen as a positive force. Cash traded steady to slightly higher. The 2-day lean index was up to 85.54 from 85.14 the previous session. The monthly cold storage report, released after the close, showed end of December frozen pork stocks at 554.4 million pounds which was up 14.4% from last year but down.8% from November. Cold storage supply normally increases by.9% for the month so the.8% decline is considered supportive to the hog market. Slaughter came in below trade expectations at 429,000 head which is sometimes seen as a slight negative but could be weather related.
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