CME update: hog futures lift as slaughter ramps up
US lean hog futures firmed on 20 May despite increased slaughter rates.
21 May 2020
2 minute read
By: Reuters reports that social distancing rules at swine processing plants are keeping slaughter rates below normal levels.
CME June lean hogs gained .225 cent to 56.875 cents per lb, while the July contract dropped .475 cent at 55.8 cents per lb.
The most-active July hogs contract has fallen for six sessions in a row and nine of the last 10.
The US Agriculture Department said on Wednesday that the daily hog slaughter was 397,000, matching Tuesday as the highest total since 17 April.
Slaughter numbers remain well below pre-coronavirus pandemic averages, as COVID-19 outbreaks at slaughter facilities have led to plant closures, backing up hogs and cattle at the farm level.
