CME update: February futures end lower, but traders expect boost in commodities markets

US lean hog futures closed narrowly mixed on 7 January, as traders weighed improving pork demand against existing closures.
calendar icon 8 January 2021
clock icon 3 minute read

Front-month hog futures were pressured by ample hog supplies and lacklustre cash markets as meat packers work through backlogs caused by holiday shutdowns. CME February lean hogs ended down 0.650 cent at 69.125 cents per pound, at a premium to the CME's lean hog index at 62.42 cents.

"It's going to be hard to move February hogs higher if the cash isn't moving higher as well," Norcini said.

Tyson Foods Inc said it resumed slaughtering hogs at a plant in Columbus Junction, Iowa, three weeks after idling the facility because of a mechanical malfunction.

However, deferred hog futures found support from speculators investing in commodities as a hedge against inflation.

"There is a growing sense that the commodity sector as a whole is going to do very well in 2021," Norcini said. "So people are buying out in those further-out months, positioning for that."

Read more about this story here.

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.