Wed 20 Feb 2013 15:31:14 CT
April hogs closed slightly lower on the session with a very strong recovery off of the mid-session lows. The market traded moderately higher on the day into the pit opening as traders seemed to have reacted to supportive weather forecast for the rest of this week, higher pork values late yesterday and weekly weight data which showed that producers were current with marketings. However, selling emerged shortly after the bounce and futures were trading sharply lower on the day into the mid-session. Traders see the potential loss in export market to China and Russia as potentially negative forces and this news may have added to the bearish tone today. There were also rumors that a large New York hedge fund was liquidating commodities. April hogs traded as low as 82.10 into the mid-session. Cash markets were steady to $1.00 lower. Weekly average weights for Iowa/Minnesota for the week ending February 16th came in at 275.3 pounds from 275.7 pounds last week and 276 pounds last year. The 2-day Lean index ending February 15th was at 86.59 from 87.73 the previous session which leaves April at a stiff discount for this time of the year. Slaughter came in slightly below expectations at 421,000 head.
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