Hog Futures Higher on View of Rising Demand

Hog futures continue to rally with pork prices just two cents below the late May highs.  This is reportedly the “longest rally” since March on the view of increasing demand for “the other white meat.”

The USDA is reporting domestic meat-packing plants processing approximately 365,000 hogs yesterday – almost 3% more from last week.  Also reported is a 38% increase in pork meat exports from the prior week before, and if that isn’t enough wholesale pork prices have said to have climbed almost 3.5% this month already.
           
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the current hog futures situation, Strength in wholesale pork prices have lent support to (hog) futures. Strong demand from consumers have also helped.”  Craney added, “Look for momentum to continue in hog prices with the strong demand expectations.”

I screwed up with hog futures yesterday!  The trend was still technically “up” but with the market making lower lows from the May high I decided to bail on the position a little early.  Now, I will need for hog futures to pull-back to get back onboard this market in a lower-risk scenario.

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