Commodities Tuesday, Oct. 14, 1986 : Pork Futures Up The Limit

Pork futures soared the limit allowed for daily trading on the belief that prices may have bottomed out.

Pork bellies gained as much 2 cents a pound on the Chicago Board of Trade and the nearby hog contracts were up the 1 1/2 cents-a-pound limit.

In some other markets, coffee plunged the limit; wheat and soybeans were mostly higher while corn was mixed; and oil prices moved higher.

“The cash (hog) market was basically mixed,” said Charlie Richardson, an analyst in Denver with Lind-Waldock. “But people have been expecting the 10-week cycle lows in pork. It looked like bellies were about to turn around yesterday and this continued today.”

So with the possibility of a sudden rally, traders who had a surplus of sales over purchases started buying before prices leaped too far upward, Richardson said.

Traders also said cash hog prices are expected to be 50 cents to $1 per hundredweight higher on Wednesday.

Cash cattle prices remain firm and deliveries were few, but futures prices were hit by some profit-taking and closed mostly lower, Richardson said.