Waning Demand Weighs Heavy on Hog Futures

Signs of waning pork demand have been weighing heavy on hog futures this week.  Hog futures have been down four trading sessions in a row, and today an acceleration to the downside.

The USDA reported yesterday wholesale pork prices plunged almost 2% alone.  A major food producer stated last week pork prices just over 2% at the end of December compared to prices the same period the year before.

Hog futures dropped significantly in today’s session due to weaker demand and increased slaughter figures.  Demand is sluggish and is not expected to pick up until March or April,” said Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current hog futures situation.  Levy added, “Warmer temperatures in the Midwest have prompted hog farmers to increase the number of hogs brought to slaughter, keeping pressure on the (hog) futures prices.”

Hog futures are in the process of a trend change from up to down.  A lower low for hog futures tomorrow would change my directional outlook.

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