CME update: lean hog futures retreat after reaching six-week high
US lean hog futures settled lower on 2 December, but traders say they are maintaining previous momentum.
3 December 2020
3 minute read
By: Reuters reports that CME's benchmark February lean hog futures contract settled 0.875 cent lower at 67.875 cents per pound, retreating after reaching a nearly six-week high on 1 December on support from a steady cash trade, said Matt Wiegand, risk management consultant at FuturesOne.
"Cash price, hogs are straight sideways, and keeping a good clip there," he said.
When explaining the retail outlook, Weigand said, "You had retailers loading up a little bit here, in anticipation of more shutdowns like we saw this spring. Maybe they're going to be backing off a little bit until they can move some inventory."
Daily hog slaughter remains strong at 497,000 head, but the week-to-date pace looks to fall short versus last week and a year ago.
