Hog Futures Slump On Waning Demand

On signs that domestic pork demand is slowing, hog futures are down big for a second day.  Hog futures (February) are currently trading at 9050 – a full $2.00 lower than yesterday’s high.

This past mid-June cash prices for hogs for immediate delivery were at a high, but since then cash hog prices have slid 20% (as of yesterday), USDA data reveals.  Hog futures, however, have continued to exaggerate the June cash highs by reaching their $92.50 high just last month.
Speculative traders bought CME December hogs with the view that the contract is undervalued based on the exchange’s soon-to-be-released hog index. The CME said it would on Tuesday issue its first lean hog index since the exchange suspended the data due to the partial US government shutdown,” said Mason Ching, Automated Trading Manager at Global Futures Exchange & Trading Company in Encino, CA, regarding the current hog futures situation.  Ching added,Hog futures also benefited from short-covering.”

The trend for hog futures is rolling over downward as of today – in my research.  I will evaluate how & when to get short this market later today after the closing bell. 


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