CME update: hog futures end mixed on concerns about feed costs
Nearby US lean hog futures weakened on 13 January, weighed down by prospects for rising feed costs due to higher prices for corn, soybeans and wheat.
14 January 2021
3 minute read
By: Reuters reports that the livestock futures market was strong for many deferred contracts as traders expressed concerns about supplies tightening by the end of 2021.
Weakness in the cash market added pressure to nearby futures contracts.
Chicago Mercantile Exchange (CME) February lean hogs dropped 1.65 cents to 66.85 cents per pound. April and May hog contracts also were lower while contracts from June onward rose.
The most-active February contract dropped below its 20-day, 30-day, 40-day and 50-day moving averages during the session.
Estimated pork packer margins fell to $37.30 from $45.70 per head on 12 January, according to livestock marketing advisory service HedgersEdge.com.
