CME update: lean hog futures get a boost on strong pork demand

US lean hog futures gained on 30 November as demand for pork keeps pace with strong production.

1 December 2020, at 8:18am

Reuters reports that the CME benchmark February lean hog futures contract settled 1.325 cents higher at 68.575 cents per pound.

"Demand must be good," said Alan Brugler, president of Brugler Marketing. "Cold storage stocks continue to be low, even though we're into peak production time. That tells me we're getting rid of whatever inventory we're producing."

Brugler said the market is still absorbing the 27 November weekly export report from the US Department of Agriculture, which showed strong pork shipments to China.

"I think China's going to continue to be a big shipper through year end, because of trying to fill the coolers before their Lunar New Year," he said.

Daily hog slaughter remains on pace with last week and a year ago, with 497,000 head processed on Monday 30 November.

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