Hog Futures Extend Rally on Demand Outlook

With the world’s biggest consumer of pork meat speculated to be buying more US pork exports, we saw hog futures rise to their highest levels since last summer.  Pork prices may be rising as a prominent Chinese company is buying out “Smithfield Foods, Inc.”

Here’s what seems to be going on… Shuanghui Int’l Holdings, Ltd. announced just yesterday they were acquiring the Virginia-based company.  When/If the deal is completed, shipments of pork products could total nearly 10% more than was originally forecasted.    

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current hog futures situation, “As summer time moves in we usually see higher prices in the meats.  This looks to be the same this year.”

Hog futures trend remains upward with no top yet in sight.  Before I can get long hog futures once again, I need some type of pull-back lower for a lower-risk trade.

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