CME update: hog futures pushed slightly higher on light recovery bounce
US lean hog futures made modest gains on 29 June, bouncing back from early declines and firming on technical buying before the end of the month and quarter.
30 June 2020
2 minute read
By: Reuters reports that the firming market comes after a three-session slide last week.
A stronger close in Wall Street’s equity markets bolstered optimism about the US economy and wider consumer demand for meat.
CME lean hog futures also closed modestly higher in a light bounce after Friday's percent plunge in the benchmark August contract.
CME July lean hogs settled up 0.100 cent at 45.375 cents per pound and August ended up 0.325 cent at 48.450 cents per pound.
Rallies were capped by plentiful hog supplies. The USDA's quarterly hog inventory report last week showed a record-large 1 June supply of hogs that was up 5.2 percent from a year earlier. Analysts, on average, had expected a 3.7 percent increase.
Speaking of the modest gains, Don Roose, president of Iowa-based US Commodities said, “there’s no shortage of meat.”
