LIVESTOCK-U.S. hog futures advance for second day; cattle edge higher
Julie Ingwersen / Reuters
February 7, 2020 / 5:46 PM
CHICAGO, Feb 7 (Reuters) - U.S. lean hog futures closed higher on Friday for a second session on follow-through buying after Thursday’s limit-up close and reminders of stepped-up Chinese demand for U.S. pork, traders said.
Benchmark April lean hog futures on the Chicago Mercantile Exchange (CME) settled up 1.375 cents at 66.250 cents per pound.
The market continued to react to comments from a Tyson Foods Inc executive about surging pork demand from China, where an outbreak of African swine fever has devastated the Chinese hog herd, tightening pork supplies.
Tyson Chief Executive Noel White told analysts on a conference call Thursday that the company’s first-quarter orders to China were up nearly 600% from a year earlier.
Several traders cautioned that year-ago pork sales to China likely were relatively small. Also, CME lean hog futures were seen as oversold and primed for a rebound after the April contract tumbled 16% last week.
“The market’s reaction to the Tyson comments was ridiculous. However, I don’t think we are going to going to go back down,” said Rich Nelson, chief strategist for Allendale Inc.
“The Tyson comment reminded the trade that there is a good build-up in pork exports for this year,” Nelson said...