Global pig markets trying to recover and having some success

After a steep, two-week downdraft in US lean hog futures prices, this week’s saw a decent corrective rebound. Hog futures are caught between seasonally elevated cash prices and bearish expectations for prices during the second half of 2021. The preliminary figure for the CME Lean Hog Index came in at $112.13 Wednesday 30 June, which means the July futures settlement is discounted about $4.75 with 10 business days of trading before expiration on 15 July. Ideas that surprisingly tight short-term hog supplies, as implied by a five-pound drop in average pig weights over the past month, as well as strong seasonal demand for several pork cuts, such as loins, ribs and bellies, will support prices through mid-July supported the nearby contract. As is very often the case at this time of the year, the industry is trying to get a sense of the size of the summer-fall decline in US cash hog prices. USDA Thursday 1 July reported US pork net sales of 28,600 metric tonnes (MT) for 2021 were ...