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CME update: hog futures fall for third straight session on tight supplies

US lean hog futures fell on 11 May for a third consecutive session after reaching a contract high last week.

12 May 2021, at 8:11am

Reuters reports that June hogs settled down 0.925 cent at 111.175 cents per pound.

Tight US hog supplies continued to underpin the market, but some traders wondered whether futures have peaked for the time being.

Meat prices have been climbing steadily since mid-March, reflecting consumer demand ahead of the summer grilling season and the reopening of restaurants as the US economy bounces back from the coronavirus pandemic.

"The barbecue season is never going to be better than this year," said Terry Roggensack, analyst with The Hightower Report. "The government is telling us that the safest way to go back and see friends and family, or even have business get-togethers, is outside, in a barbecue setting," he said.

But speaking of the latest trading moves on the CME, he said, "I think hogs have put in a major high. The June (contract) not following through today should make people nervous."

Traders await a monthly USDA crop report on Wednesday that will include the government's first official grain supply and demand forecasts for the 2021/22 marketing year.

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