CME update: lean hog futures close mixed

calendar icon 2 October 2020
clock icon 2 minute read

Reuters reports that CME lean hog futures ended mixed on 1 October, with the nearby October contract gaining against back months on spreads, supported by strength in the CME's lean hog index.

"It looks like (packers) are struggling a little bit to get pigs," Matthew Wiegand, a broker at FuturesOne, said. He went on to say that wholesale pork prices rose on Thursday 1 October, according to the USDA.

Expectations that hog supplies would ease later this year pressured the most-active December contract.

"Fourth-quarter production is normally the highest of the year," said Alan Brugler of Brugler Marketing & Management.

CME October lean hog futures settled up 1.350 cents at 74.150 cents per pound, while most-active December hogs ended down 0.250 cent at 62.850 cents.

The USDA reported export sales of US pork in the week ended 24 September at 39,500 tonnes, including sales of 6,500 tonnes to China. Beef export sales totalled 24,700 tonnes, including sales of 4,300 tonnes to China.

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