CME update: lean hog futures rebound on bargain buying
US lean hog futures gained on 19 April, nearly reversing widespread selloffs on Friday 16 April as traders capitalized on bargain buying.
20 April 2021
3 minute read
By: Reuters reports that CME June lean hog futures surged 2.625 cents to settle at 104.325 cents per pound, correcting from last week’s declines. The contract bounced on bargain-buying after tumbling more than 6.6% last week and dipping to its lowest since 23 March.
Robust cash hog prices and firming wholesale pork prices supported the market. The US pork cut-out, an indication of wholesale pork prices, rose $1.99 to $114.08 per cwt on Monday afternoon.
The market has recently been in retreat after setting life-of-contract highs earlier in April, buoyed by the approach of the summer grilling season and optimism about the US economy reopening.
"We overdid it to the downside, technically, fundamentally - and now we are getting a bounce-back," said Don Roose, president of Iowa-based US Commodities.
