Hog futures rebounded slightly in early Friday action. They dropped sharply Thursday in response to poor cash and wholesale news. Technicians probably jumped upon the bearish bandwagon as well, since the breakdown seemed to mark the start of a follow-through drop from a bear flag formation. Cash prices proved quite weak again Thursday afternoon, but pork cutout was little changed. We tend to expect continued short-term weakness. April hogs rose 0.07 cents to 84.40 cents/pound in the early hours of Friday morning, while June inched 0.05 cents higher to 92.75.
Cotton futures gave back the bulk of their Thursday gains early Friday morning. The previous advance was powered by a supportive result on the weekly USDA Export Sales report, whereas the reversal probably reflected the latest news concerning deliverable stockpiles. Those jumped over 18,000 bales, or 8.9%, overnight, with over 72,000 reportedly awaiting review. This growth suggests recent talk of active commercial selling in the wake of the early-winter rally was well justified. March cotton slipped 0.14 cents to 80.88 cents/pound in early Friday morning action, while December slumped 0.02 cents to 82.98.