CME update: lean hog futures slip as backups persist at slaughter facilities
US lean hog futures dropped on 22 May after disappointing USDA cold storage data published.
25 May 2020
2 minute read
By: Reuters reports that the June lean hogs contract lost 0.575 cents to 58.775 cents per lb, while the July contract sank 1.275 cents to 55.90 cents per lb.
The USDA showed a slight drop in cold storage meat supplies on 21 May. Frozen pork was down 1 percent from last year.
"There was no big draw down in stocks, which was a little counter to what the trade was expecting," said Rich Nelson, chief strategist at Allendale Inc.
Nelson told Reuters that the trend indicates that the backup in hogs is likely to persist into the future.
The USDA said on Friday the daily hog slaughter dipped to 380,000.
