Many in the livestock industry probably believe greatly elevated cattle and beef prices will go far in supporting the hog and pork complex as well. Thus, the traditional mid-winter swine rally might be exaggerated if/when fed cattle prices surge to fresh record highs. That may at least partially explain the gains posted by the nearby CME hog contracts this morning. Conversely, one has to wonder if deferred hog futures are falling prey to suspicions that the surprisingly large numbers stated on the late December USDA Hogs & Pigs report bode ill for the summer-fall price outlook. That might explain the mixed nature of Tuesday morning trading. February hogs rose 0.30 cents to 86.60 cents/pound around mid-session, while the June contract slipped 0.05 cents higher at 98.50.
Commodity traders seem reluctant to push the markets Tuesday