Pork futures went through wild price convulsions Thursday, soaring to limit highs before crashing to limit lows allowed for daily trading.
"It was a real significant reversal for hogs and bellies," said Philip Stanley, an analyst in Chicago with Thomson McKinnon Securities Inc.
Prices have risen sharply since April and "it's a real emotional market at these levels," he said.
The July hog contract advanced the limit 1 1/2 cents a pound during the past two days on the Chicago Mercantile Exchange and had gained 4 cents this week before the reversal Thursday. These advances were attributed to the hot weather, which has been keeping farmers from exposing their animals to heat stress by trucking them to market.
There were no changes in the fundamental factors that have been driving the market, Stanley said.
"The market just exuded a feeling that maybe prices had gone too far, too fast," he said. "They didn't have the confidence to hold their positions. It was like everybody trying to get through the door at the same time."