CME update: lean hog futures rise on export hopes
US hog futures rose 1.7 percent on 25 September as the market shrugged off bearish supply data on hopes that exports would keep their current trajectory.
28 September 2020
3 minute read
By: When speaking to Reuters about the day’s trading, Rich Nelson, chief strategist for commodity broker Allendale said, “…at a time when we are nearing out fourth-quarter peak in supply, the market is highly focused on the belief that export sales are running the show.”
Chinese demand for US pork remains strong as African swine fever continues to ravage pig herds across Asia.
A USDA report issued on 24 September after the markets closed showed that the pig herd was 100.7 percent of the year-earlier total as of 1 September. A Reuters poll of traders showed that analysts had been expecting a 100.1 percent result.
CME October lean hog futures rose 2.275 cents to end at 71.75 cents per pound and most-active December hogs gained 1.15 cents to 64.425 cents.
