CME update: lean hog futures closed narrowly mixed despite Wall Street optimism
US lean hog futures had a mixed day of trading on 24 November despite positive trading signs in other markets.
25 November 2020
3 minute read
By: Reuters reports that news of potential vaccines for COVID-19 sparked hopes for an economic recovery that could bolster meat demand.
Wall Street's Dow Jones industrial average hit a record high above 30,000 on upbeat COVID-19 vaccine news, including likely shots for some first responders in a matter of weeks.
Livestock futures have made positive moves this week after a sell-off last week that traders attributed in part to rising coronavirus infections across the country that threatened to shutter more restaurants and food service businesses.
"These closures are not friendly to demand," said Jeff French, an analyst with Top Third Ag Marketing.
CME lean hog futures closed narrowly mixed, with the most-active February contract ending down 0.375 cent at 66.750 cents per pound, pausing after a two-session advance.
Funds hold a sizable net long position in CME lean hog futures, leaving the market vulnerable to bouts of long liquidation, French said.
