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CME update: hog futures rose for a second day ahead of quarterly USDA report

US lean hog futures added for a second straight day in anticipation of the 24 September Hogs and Pigs report from the USDA.

24 September 2020, at 8:42am

The report, which is released quarterly, is expected to show smaller pig inventories across the US.

Doug Houghton, an analyst from Brock Capital Management, explained to Reuters, "The front-end contracts are being supported by a strong cash market, and I think the back-end contracts were more cautious. Expectations from the trade are for some further liquidation, which would be positive for those back-end contracts."

CME October lean hog futures settled 1.175 cents higher to end at 69.500 cents per pound and most-active December hogs rose 0.250 cents to 64.350 cents.

Hog markets were further energised by reports of increased pork purchases from China, which doubled its imports from a year ago to 350,000 tonnes, customs data showed.

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