CME update: hog futures rally on technical bounce
US lean hog futures rose on 18 May, climbing 1.8% on a technical bounce after three straight sessions of declines pushed prices to their lowest since 30 April.
19 May 2021
3 minute read
By: Reuters reports that concerns over tightening meat supplies during grilling season added support to CME hog futures.
"We are still watching weekly hog slaughter rates," said Rich Nelson, chief market strategist for Illinois-based broker Allendale.
US Agriculture Department data showed the daily hog slaughter held steady at 478,000 head after hitting its lowest in nearly six weeks on Friday 14 May.
In the lean hog market, CME June futures settled up 2 cents at 110.65 cents per pound. The contract broke through resistance at its 20-day moving average.
On the cash front, the pork cut-out value eased from its one-year high of $118.27 hit early on Tuesday to $116.06 by the end of the day, according to USDA data.
Update from China’s Dalian Exchange
China's live hog futures fell more than 4% during trade on 19 May, dropping to their lowest levels since their launch in January.
The contract on the Dalian Commodity Exchange was last down 4.2% at 23,695 yuan ($3,686.10) per tonne.
($1 = 6.4282 yuan)
