CME update: lean hog futures rebound on technical, short-covering after a steep drop
US hog futures rebounded on 20 November, reversing steep losses from 19 November in an end-of-week short-covering and technical bounce.
23 November 2020
3 minute read
By: Reuters reports that though the market rebound was welcome, investors remain wary about rising COVID-19 infections and potential market disruptions.
Lean hogs were higher from the opening bell, clawing back steep losses from the prior session despite big supplies, weakening pork prices and uncertainty about pork imports by China.
Livestock markets were roiled this week by concerns that rising coronavirus infections would trigger restrictions like those early in the pandemic, when closures of restaurants dented meat demand and worker illnesses at packing plants backed up the livestock supply chain.
"The cattle and hogs both rebounded technically from yesterday's COVID fears." said Don Roose, president of US Commodities.
"We still have big (hog) supplies coming at us and the cash market is still weak. The big question mark is will China continue to be a buyer of pork as they're expanding their herd."
February lean hogs closed 2.300 cents higher at 65.350 cents per pound, clawing back nearly all of Thursday's 2.850-cent drop.
