Global pig markets trying to recover and having some success

Published 2021년 7월 2일

Tridge summary

US lean hog futures prices rebounded after a steep decline, driven by seasonally high cash prices and tight short-term supplies. The CME Lean Hog Index came in at $112.13, with the July futures settlement discounted at $4.75. Factors supporting prices include surprisingly tight short-term hog supplies and strong seasonal demand. However, concerns about a potential decline in cash hog prices in the summer-fall and bearish expectations for the second half of 2021 remain. Meanwhile, China's herd recovery from African swine fever has led to a drop in US hog market prices, with China planning to purchase pork for state reserves to support prices. However, the circulating new variants of African swine fever in China pose a challenge. Smithfield Foods will pay $83 million to settle price-fixing claims.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...

Source: Thepigsite