ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

CME update: lean hog futures rise as pig supplies become tighter

US lean hog futures climbed on 30 April as tight pig supplies threaten to shrink available pork at a time when consumer demand remains strong.

3 May 2021, at 8:53am

Reuters reports that CME most-active June lean hogs added 3.000 cents to 109.725 cents per pound, with life-of-contract highs set in contracts from July 2021 through April 2022.

For the week, June hogs added 4.000 cents, a 3.8% gain, climbing 19 of the last 20 weeks.

"Hog supplies are still shrinking seasonally. Pork supplies are figuring to tighten up as well," said Doug Houghton, technical analyst at Brock Capital Management, noting the fundamentals remain supportive for higher hog futures. "It looks like we’re starting a new upward move."

The lack of available hogs has pushed packer margins negative, with packers seeing a $20.10 loss per head on Friday, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC.

Hog slaughter eased, with 470,000 head processed on 30 April, down slightly from a week ago, but 2.403 million processed for the week.

Read more about this story here.

Sponsored content