CME update: lean hog futures get boost from cash markets
US hog futures rose to their highest in more than a year on 6 October, rallying to keep pace with gains in the cash market.
7 October 2020
3 minute read
By: Reuters reports that cash market strength came from continued good demand despite the close of the US grilling season and cooler weather.
"There's been nothing normal about 2020 since March, and this late summer contra-seasonal hog and pork strength certainly fits that theme," brokerage StoneX said in a note to clients.
Chicago Mercantile Exchange October lean hogs gained 1.575 cents to close at 76.325 cents per pound. Most-active December hogs were up 1.225 cents, settling at 63.875 cents.
On a continuous basis, the front-month contract's peak of $76.375 was its highest since 14 August 2019.
The US pork cut-out, an indication of wholesale pork prices dropped to $92.55 cents per cwt. It hit its highest in more than four months last week.
