CME update: US lean hog futures climb as grain futures lose ground
US lean hog futures rose on 20 January, supported by lower feed-grain futures and expectations that the US herd will shrink as spring approaches.
21 January 2021
3 minute read
By: Reuters reports that the CME's most-active April lean hogs added 1.65 cents to close at 73.075 cents per pound, while the spot February contract strengthened 1.950 cents to end at 68.425 cents per pound.
Summer month contracts are trading at a significant premium to front-months, with June hog futures 16.075 cents higher than February.
"We're going to have tighter numbers," said Scott Varilek, broker at Kooima & Kaemingk Commodities Inc. "There's some empty slots noted around in the barns currently."
The CME lean hog index for the two days ending January 18 was 2.50 cent below the February contract at 65.92 cents per pound.
