CME update: hog futures sag as slaughter rebounds

Nearby US lean hog futures hit a six-week low on 3 June as the slaughter pace recovers.
calendar icon 4 June 2020
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The US pork cut-out, an indication of wholesale prices, was down 27 cents at midmorning at $74.10 per cwt, the USDA said. The USDA updated the cutout later on Wednesday to $75.01 per cwt, a net increase of 64 cents for the day, but the value was still down from roughly $90 per cwt last week.

Traders awaited the USDA's weekly export sales report on Thursday to see whether China, the world's top pork consumer, purchased expected amounts of US pork in the week that ended 28 May. The Agriculture Department reported weekly US pork sales to China as averaging over 23,000 tonnes from early March through the month of April. However, net sales in the first three weeks of May were a negative 417 tonnes.

"There is not a lot of good news out there [with)] these worries about export demand, and the wholesale market not holding together. And we still have a lot of hogs in the pipeline," said Altin Kalo, agricultural economist for Steiner Consulting.

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