CME update: lean hog futures rise slightly
Lean hog futures edged up on 6 July, taking advantage of bargain buying.
7 July 2020
3 minute read
By: Reuters reports that US pig supplies are abundant, which should limit a rebound in lean hog futures after the market fell to contract lows last week.
"We're just hovering off these contract lows, so there's some bargain buying coming in," said Brian Hoops, president of US brokerage Midwest Market Solutions.
CME August lean hogs ended up 0.075 cent at 49.275 cents per pound, after setting a contract low of 47.525 cents last week. October hogs closed 0.700 cent higher at 49.050 cents per pound.
Pigs backed up on farms after slaughterhouses closed temporarily in April and May as meatpacking workers fell sick with the new coronavirus. Plants have since reopened and slaughterhouses are working through excess supplies of livestock.
The US Department of Agriculture, in newly released data, said US pork exports to China in May reached 108,869 tonnes, up from 34,427 tonnes a year earlier. It was the second highest month for US exports to China ever, after April 2020.
China suspended imports from two Brazilian pork plants owned by meatpackers JBS SA and BRF SA, according to the Chinese customs authority, as it cracks down on meat shipments amid concerns about the new coronavirus.
