Signs of Slow Pork Demand Sink Hog Futures

Well it was a good long hog futures ride while it lasted. Pork prices abruptly retreated south on the outlook of increased supply with not matching demand.

The USDA shows meatpacking plants processing 5.2% more hogs earlier this week than last – only a 0.7% increase from this time last year.  They also reported wholesale pork prices dropping 1.1% which is the lowest since the very beginning of the month.
Expectations for pork production in the fourth quarter of this year are higher than they were for the third quarter, and this rising supply is concerning the market. Seasonal demand tends to taper off after Labor Day, so there are demand fears in the market,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current hog futures situation.  Craney added, “These fears will keep the hog market trading in a range.”

Hog futures trend is still up as current pork futures prices have recently broke out above the 2012 highs.  All time hog futures prices are now being tested but I will require either a low-risk way back in this market, while anticipating a significant pull-back or sideways action in the near future.


Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
*First Name:
*Last Name:
*Day Phone with
Area Code:


Follow Us on Twitter