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CME update: lean hog futures firm on COVID-19 vaccine hopes

US lean hog futures finished higher on 9 November after global media outlets reported progress towards a COVID-19 vaccine.

10 November 2020, at 8:31am

Reuters reports that news of the potential vaccine raised hopes for a quick economic recovery from the coronavirus pandemic and increased meat demand.

Commodity and equity markets surged when Pfizer Inc said its vaccine was more than 90 percent effective in preventing COVID-19, marking the first successful results from a large-scale clinical trial.

The gains in livestock futures came after rising COVID-19 cases globally and increased lockdowns recently unnerved meat traders.

Pfizer's announcement brought a bout of "relief buying" to the cattle markets, said Matt Wiegand, commodity broker for FuturesOne. There is "better optimism based on the outside markets," he added.

CME December lean hog futures rose 0.700 cent to close at 65.600 cents per pound.

Traders on Tuesday 10 November will review a monthly US Department of Agriculture supply and demand report. Analysts surveyed by Reuters expect the agency to cut its US yield and inventory estimates for corn and soy crops, both used for livestock feed.

Meat packers like Tyson Foods and JBS USA on Monday slaughtered an estimated 493,000 hogs, unchanged from a week ago and up from 444,000 hogs a year ago according to USDA data.

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