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.
calendar icon 23 November 2020
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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.

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