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CME: Lean hog futures fall

Chicago Mercantile Exchange (CME) lean hog futures ended lower on Thursday. Near closing, futures dropped on technical selling and soft cash hog markets, traders said.
calendar icon 12 November 2021
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The CME's lean hog index, a two-day weighted average of cash hog prices, fell 0.51 cent to 78.72 cents per pound, Reuters reports.

CME December lean hogs settled down 0.325 cent at 75.375 cents per pound and February hogs ended 0.250 cent lower at 79.075 cents.

Hog futures traded higher at times. Analysts attribute the fluctuations to an announcement from the US Department of Agriculture (USDA) on Wednesday, which said it would allow nine pork processing plants to apply to operate faster line speeds under a pilot program. Analysts expect increased speeds could boost packer demand and lead to lower hog weights, a bullish factor for hog futures.

The wholesale U.S. pork carcass cutout price rose $5.23 to $95.80 per hundredweight (cwt), according to USDA data. Ham prices jumped by $23.55 to $95.17 per cwt, after easing this week.