Front-month hogs hit highest prices since July 2014
Mark Weinraub, Reuters
Jun 09, 2021
CHICAGO — Chicago Mercantile Exchange (CME) lean hog futures ended mixed on Wednesday, with the thinly traded front-month contract rising to a seven-year high as strong domestic demand continues to underpin prices even as export prospects wane, traders said.
The most-active hog futures contract eased on profit-taking but remained near the peak it hit earlier this week.
China’s state planner said on Wednesday it aimed to use state reserves of pork to stabilize hog production and prices, after a more than 50% plunge in pork and hog prices since the beginning of the year.
“It is their way of signaling to the market that pork prices have moved low enough, and offering some support to producer margins which have moved to below breakeven levels,” brokerage StoneX said in a note to clients.
July hog futures settled 0.300 cent lower at 121.500 cents per pound. Technical support was noted at the contract’s 10-day moving average...