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CME update: lean hog futures fall on declining wholesale pork prices

US lean hog futures sank on 28 October on weaker wholesale prices.

29 October 2020, at 8:40am

Reuters reports that the US pork cut-out, an indication of wholesale pork prices, fell by $4.31 to $84.52 cents per cwt, according to the US Department of Agriculture. Prices eased for pork bellies, ribs, butts and loins.

Chicago Mercantile Exchange December lean hogs futures slid 1.275 cents to 66.375 cents per pound.

Technical selling added pressure on futures prices after lean hogs closed weaker on 27 October, analysts said.

On Thursday 29 October, traders will review weekly US export sales data for signs of improved demand from China, the world's top pork consumer.

Traders have been hoping for increased US sales to Chinese buyers after China and other Asian buyers banned imports of German pork in September because of deadly pig disease in wild boar. China's purchases of US pork have fallen short of some traders' expectations.

Nine more case of the disease, African swine fever, have been confirmed in wild boars in the eastern German region of Brandenburg, Germany's federal agriculture ministry said on 28 October. The new discoveries bring the total number of confirmed cases to 103 since 10 September, all in wild animals.

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