LIVESTOCK-Lean hogs bounce after sell-off, cattle also rise
Karl Plume / Reuters
August 7, 2019 / 4:13 PM
CHICAGO, Aug 7 (Reuters) - Chicago Mercantile Exchange (CME) lean hog futures rallied as much as 4% on Wednesday in a technical buying and short-covering bounce following a string of losses triggered by worries over exports to China.
The world’s largest hog and pork market has threatened to halt all U.S. agricultural product purchases after U.S. President Donald Trump vowed to slap more tariffs on more Chinese goods next month if there is no progress toward a trade deal between the two countries.
Fears about the spread of African swine fever in Europe added support as traders speculated that U.S. pork exports could benefit.
Livestock markets also caught an updraft from a recovery in outside markets including equities and energy markets, which bounced from steep early-session losses on Wednesday afternoon.
“We beat down the hogs too hard, down seven of the last 10 sessions and they shed 19% of their value,” said Karl Setzer, commodity market risk analyst for AgriVisor.
“There’s also still concerns in the market that African swine fever is going to spread in Europe and eventually we are going to see the demand come through for U.S. pork,” he said...