CME update: hog futures set life-of-contract highs as US supplies tighten
US lean hog futures surged on 3 May as restricted pork supplies put extra pressure on processors.
4 May 2021
3 minute read
By: Reuters reports that CME most-active June lean hogs ended up 2.925 cents at 112.650 cents per pound, and futures set new life-of-contract highs. The market remained strong after finishing up by the daily, exchange-imposed 3-cent limit on Friday 30 April.
Cash prices were also firm, and the US Department of Agriculture pork cut-out value rose $1.20 for carcasses to $111.66 per cwt.
The lack of available hogs has led to negative margins for pork processors. Packers were seeing a $18.50 loss per head on Monday, compared to a loss of $9.25 a week earlier, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC.
