CME update: big supplies hinder hog market
US lean hog futures sank on 3 August as oversupply becomes more apparent.
4 August 2020
2 minute read
By: Reuters reports that CME October lean hog futures settled down 1.225 cents at 44.4 cents per pound.
Hog futures are suffering from a glut of supplies on the market, as expected euthanisations during the spring never reached the 7.5 million initially forecast, explained commodity trader Don Roose.
Meatpacker Tyson Foods Inc on 3 August said the COVID-19 pandemic will increase operating costs and hinder sales volumes into next year. The company reported quarterly sales of $10.02 billion, down from $10.89 billion a year earlier.
