CME update: US hog futures close lower, taking a cue from weak beef exports
US lean hog futures fell on 27 November, but traders remain optimistic for 2021.
30 November 2020
3 minute read
By: Reuters reports that CME lean hog futures closed lower, with the benchmark February contract settling 0.425 cent lower at 67.250 cents per pound.
For the week, February lean hogs ended 1.90 cents higher, a 2.9 percent weekly gain.
Weekly pork export sales fell to 18,800 tonnes, a 35 percent drop from a week prior and 47 percent below the previous four-week average.
Strength in spring hog contracts indicates optimism on consumer demand in 2021, according to Chuck Shelby, president of Risk Management Commodities.
"We've got some big-time premiums in May of 2021 and on out. I think this forward-looking market, trying to anticipate getting over COVID and getting the vaccine going and consumer demand comes back," said Shelby.
