CME update: lean hog futures retreat as supplies ramp up
US lean hog futures fell on 10 June on expectations for abundant pork supplies as meat processors continue to work their way through backlogged hogs.
11 June 2020
2 minute read
By: Reuters reports that traders expect meat processors to work through their backlog of stock within the next two weeks.
Pork supplies are expected to surge as meat plants resume operations. Though many slaughterhouses are operating at reduced capacities, the processing pace is expected to rise.
On 10 June, processors slaughtered 450,000 hogs, up 5 percent from a week earlier, but down around 7 percent from a year ago, according to USDA data.
Richard Nelson, chief strategist for Allendale said, “for the next two to six weeks, the trade is just concerned about the supplies in front of us.”
Chicago Mercantile Exchange July lean hog futures , the most actively traded contract, slumped 0.175 cent to 52.800 cents per pound. August futures dropped 0.975 cent to 55.825 cents.
