CME update: US hog futures fall on demand concerns
US lean hog futures fell sharply for a second straight day on 16 April, with the most active June contract sinking 2.9% to its lowest since 23 March.
19 April 2021
3 minute read
By: Reuters reports that The market was correcting from a sharp rally fueled by expectations of demand from restaurants picking up as COVID-19 restrictions were eased in the United States. But the reopening has slowed in many areas due to rising numbers of infections.
Additionally, forecasts for cold weather across much of the US Midwest will delay grilling season.
"We got a little bit ahead of ourselves," said Don Roose, president of US Commodities in West Des Moines, Iowa. "For a grilling season you need warm weather and it is a little bit cool; that slows down stuff a bit."
The benchmark June hog futures contract dropped 3 cents to settle on Friday at 101.700 cents per lb at the Chicago Mercantile Exchange (CME). Prices bottomed out at 100.925 cents.
The CME temporarily expanded daily trading limits to 4.5 cents on Friday for the hog market after a limit down move of 3 cents on 15 April.
Overall, US meat processors 468,000 hogs, unchanged from a week ago, according to USDA.
