CME update: lean hog futures retreat from their highest point in nearly seven years
US lean hog futures corrected sharply on 12 April, with numerous contracts closing down the daily 3-cent limit on a round of profit taking.
13 April 2021
3 minute read
By: Reuters reports that the sharp drop comes after the front month contract hit its highest point since June 2014 last week.
"We have had a strong run and we are coming up a little bit short on fresh bullish inputs," said Matthew Wiegand, a risk management consultant and commodity broker at FuturesOne in Nebraska. "That creates a bit of an opportunity for profit taking in the absence of something to take us higher."
CME June lean hogs dropped 3 cents to 105.95 cents per pound. The May and July contracts also posted limit down moves but losses in the front-month April contract were kept in check from tight supplies in the cash market.
The US Department of Agriculture reported the pork carcass cut-out value on Monday afternoon at $110.10, down $3.07 from the nearly 11-month high it hit on 9 April.
