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CME update: lean hog futures close mixed at start of the month

US lean hog futures closed mixed on 2 October, with the nearby October contract supported by strong demand for pork and firm cash hog markets.

5 October 2020, at 9:45am

Reuters reports that October lean hogs rose 0.350 cent at 74.500 cents per pound, while most-active hogs ended down 0.350 cent at 62.500 cents.

The mixed day of trading came amid a larger sag in global financial markets after President Donald Trump tested positive for COVID-19. The announcement fuelled investor uncertainty, leading to a dip in the day’s trading.

"I think a lot of today was nervousness over the economy and COVID," said Doug Houghton, analyst at Brock Capital Management, referring to declines in cattle futures.

The CME's lean hog index, a two-day weighted average of cash markets, climbed to $76.74 per cwt, its highest since August 2019. The US pork cutout, an indication of wholesale pork prices, was down $3.50 at $92.15 per cwt on Friday afternoon, but up from $74.54 at the start of September.

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