CME update: US lean hog futures face pressure from limit-up grains
CME lean hog futures slipped on 31 March, reacting to limit-up grains in corn and soybean futures that will translate into higher livestock feed costs as grain users compete for tight supplies.
1 April 2021
3 minute read
By: Reuters reports that lean hog futures fell, pressured by limit-up soybean meal, though the market remains near recent highs on tight supplies due to increased consumption and a smaller herd size.
CME's most-active June lean hog futures settled down 0.725 cent at 105.300 cents per pound.
"I think these (prices) are justified by that combination of strong export demand, tighter hog numbers and tight storage stocks," said Alan Brugler, president of Brugler Marketing.
The CME's lean hog index, a two-day weighted average of cash hog prices, climbed to $98.04 per cwt, its highest since October 2014.
Daily hog slaughter remains strong, with 6,000 more hogs processed Wednesday than the same time a week prior and 16,000 more than the same day a year ago, according to the USDA.
