CME update: lean hog futures fall on technical selling
US lean hog futures sank for a second session on 28 December, facing pressure from technical selling and weak cash market selling.
29 December 2020
3 minute read
By: Reuters reports that the weak outlook for US hog futures was not lifted by the new COVID-19 stimulus bill passed by President Trump.
Futures market participation was lighter than normal as many traders remain on holiday, with markets closed this Friday for New Year’s Day.
"A lot of what we're seeing in the livestock is simple year-end positioning," said Karl Setzer, commodity risk analyst with AgriVisor.
"The stimulus package gave the market a fair amount of support today. If people have a bit more money in their pockets, they're more inclined to spend it on New Year's Eve steaks, or maybe going out," he said.
CME February lean hogs fell 0.450 cent to 66.500 cents per pound. The contract broke through technical chart support at its 50- and 100-day moving averages during the session, which accelerated selling at times.
