CME update: hog futures close higher, reversing their three-session slide

US lean hog futures closed modestly higher on 12 May, , rebounding after a three-session slide on bargain-buying and tight US supplies that have lifted cash hog prices.

13 May 2021, at 8:41am

Reuters reports that CME June hogs settled up 0.850 cent at 112.025 cents per pound.

Analysts attributed the two-month climb in meat prices to the approach cwt of the US summer grilling season, coupled with the reopening of restaurants following the coronavirus pandemic and consumers flush with US government stimulus funds.

"Demand (for meat) is just off the charts," said Don Roose, president of Iowa-based US Commodities. However, he cautioned, prices may cool soon as retailers finish stocking meat cases ahead of the US Memorial Day weekend later this month and Fathers Day on 20 June.

"Some of these (retail buying) programs might be coming to an end," Roose said.

Traders await the USDA's weekly export sales report on 13 May that should detail sales of US pork and beef in the week ended 6 May.

Read more about this story here.