Hog Futures Drop as Demand Wanes

There is an outlook that demand for domestic pork is declining somewhat, and hog futures have been in decline for most of the week.  Hog futures have been trading between last weeks price range of $95.50 and $87.50CWT.

The USDA shows wholesale pork prices down nearly 5% this year, and spot pork prices falling to the lowest price this week of nearly $74CWT.  The amount of hogs processed the first three days this week has been down just over 1% from last week.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current hog futures situation, “The cash (hog) market is weak.  The dollar has been quite strong and hog (futures) are having trouble finding anything bullish.”  Moreno adds, “In my opinion , hog (futures) will continue to move lower.”

The trend for hog futures is clearly down, but may be at a crossroads.  I wouldn’t be surprised to see a correction in hog futures even higher.

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