U.S. dollar weakness seemed to boost ag futures Thursday morning
Hog futures were mostly lower early Thursday morning, with only the expiring May future managing an increase. Their premiums to the CME lean hog index are probably limiting their upside potential at this juncture, especially after wholesale prices were essentially flat Wednesday afternoon. Still, anticipation of a spring demand surge will probably continue supporting the hog/pork complex over the short run. May hog futures progress moved up 0.05 cents to 88.65 cents/pound in early trading Thursday morning, while the June contract slipped 0.02 cents to 90.97.
There was little news concerning cotton futures overnight, which suggests other factors caused the modest rise posted early Thursday morning. The sizeable drop in the value of the dollar probably supported white fiber futures, since the currency weakness lowers the relative cost of American product on the international market. Also, cotton may simply have been due for a bounce in the wake of the large losses suffered Tuesday and Wednesday. Higher grain and soy future seem supportive as well. May cotton climbed 0.46 cents to 81.56 cents/pound in early Thursday morning electronic action, while December gained 0.26 cents to 83.68.
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