CME update: lean hog futures touch contract high for fourth day in a row
US lean hog futures extended their rally on 5 February, setting a contract high for the fourth consecutive session.
8 February 2021
3 minute read
By: Reuters reports that the sustained rally in the hog complex was underpinned by strong consumer and export demand.
Traders predicted that Chinese buyers will continue to snap up American pork after the USDA reported positive export sales on 4 February – sales of US pork to China hit a three-month high.
China, the world's top pork consumer, increased meat imports after a fatal pig virus began devastating its herd starting in August 2018. The country is attempting to rebuild the herd, but still grappling with disease.
US exports of pork and pork products to China surged 75 percent in 2020 to a record $2.28 billion, USDA data showed.
Domestic demand for meat has also been solid as more US restaurants are re-opening after COVID-19 restrictions, traders said.
Chicago Mercantile Exchange (CME) April lean hog futures closed up 1.00 cent at 80.300 cents per pound. The contract traded up to 80.625 cents, exceeding Thursday's life-of-contract high of 80.075 cents.
