Hog Futures Sink on Weakening Packer Demand

There is an emerging outlook that demand for hogs and pork may weaken.  Hog futures today have continued lower with the negative sentiment.

Speaking at an economic forum today, Tyson Food’s CEO said “margins have narrowed in its beef and pork units.”  The USDA has recently reported domestic meat-packers have slaughtered 4% less hogs than this time last year.

The trend for hog futures is clearly down with no bottoming yet in sight.  We are short hog futures from earlier today and expect pork (futures) prices to overall decline into the first week in March.


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