CME update: lean hog futures close lower on technical selling
US lean hog futures sagged on 21 April on technical selling and long liquidation.
22 April 2021
3 minute read
By: Reuters reports that CME June lean hog futures settled down 1.825 cents at 104.525 cents per pound despite firm cash prices.
Altin Kalo, economist at Steiner Consulting Group noted that commodity funds hold net long positions in CME live cattle and lean hog futures, leaving both markets vulnerable to bouts of long liquidation.
Worries about summertime demand for pork products hung over the market, Kalo said.
"The pork market overall has been driven by processing items; bellies and hams have been the big drivers. And there is a lot of uncertainty there. If (prices for) those items start to give, then that might present some risk for the summer," Kalo said.
The US pork cut-out, an indication of wholesale pork prices, fell $1.39 at $113.64 per cwt on Wednesday afternoon, with pork belly prices down nearly $4.
Traders await the USDA's weekly export sales report on Thursday 22 April.
