CME update: US hog futures ease, but demand keeps traders’ hopes high
US hog futures were weaker over the trading day on 21 October, but declines were limited as pork demand is expected to remain strong.
22 October 2020
3 minute read
By: Reuters reports that US traders are still expecting Chinese demand to remain strong as it seeks to rebuild its domestic pig herd.
CME December lean hogs fell 0.05 cent to 69.2 cents per pound, closing above session lows as it followed a recovery in the cash market.
The contract found support at its 10-day moving average for the second day in a row. It has not traded below that key technical point since 6 October.
Pork supplies during the upcoming Lunar New Year holiday in China, the world's top consumer, will be 30 percent higher than a year ago, an agriculture official said on Wednesday 21 October, after significant efforts to rebuild a depleted hog herd.
German pig prices were unchanged this week at €1.27 a kg, the association of German animal farmers VEZG said on 21 October, despite import bans by Asian countries after African swine fever was found in the country.
