ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

CME update: lean hog futures climb, extending recent rally

US lean hog futures closed higher on 20 April, extending Monday’s rally on bargain buying.

21 April 2021, at 9:15am

Reuters reports that CME hog futures surged nearly 2% on Tuesday, rallying for a second session after a profit-taking setback last week. Underlying fundamentals remain strong, including rising cash hog prices and brisk demand for pork.

Dan Norcini, an independent livestock trader told Reuters, "You've got strong seasonal demand ahead of Mothers' Day and Memorial Day. Everyone is stocking up ahead of that," Norcini said, referring to retailers.

CME June lean hog futures settled up 2.025 cents at 106.350 cents per pound.

The CME's lean hog index, a two-day weighted average of cash prices, climbed to $103.76 per cwt, its highest since October 2014.

"These packers keep putting better money on the table. The action of the packers tells us they are competing for hogs, and the (hog) numbers don't seem to be there," Norcini said.

The US pork cut-out, an indication of wholesale pork prices, rose $0.95 to $115.03 per cwt on Tuesday afternoon.

Read more about this story here.