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
3 minute read
By: 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.
