CME update: US hog futures weaken, pulling back from a previous rally
US lean hog futures fell on 10 July, reversing gains in previous trading sessions.
13 July 2020
2 minute read
By: Reuters reports that the dip was underpinned by large pig supplies and doubts about Chinese imports.
Chicago Mercantile Exchange (CME) August lean hog futures settled down 0.350 cent at 49.875 cents per pound. The contract has rebounded slightly since dipping to a life-of-contract low of 47.525 cents on June 29.
Some traders hope the market has bottomed after setting contract lows, although it still faces pressure from large US supplies.
"We finally got some short covering in that hog market but it's going to be tough to sustain a rally," said Brian Hoops, president of broker Midwest Market Solutions.
US farmers hope China remains a strong buyer of their pork to consume excess supplies.
US President Donald Trump said on Friday 10 July he is not thinking about negotiating a "Phase 2" trade deal with China as relations between Washington and Beijing sour over the coronavirus pandemic and other issues.
