Global pig outlook: Lean hog bears seize technical control, 2nd case of ASF in Hong Kong, Prop 12 compliance

February lean hog futures Wednesday dropped to a three-week low and prices have careened lower this week, producing serious near-term technical damage to suggest more downside price pressure in the near term. Pork cutout value posted a new for-the-move low this week, marking the lowest value since early June. The CME lean hog index fell another 34 cents to $74.18, as of Nov. 20, a fresh seasonal low. Cash and wholesale fundamentals continue to weaken, which should continue to weigh on cash and futures prices in the near term. The lean hog market bulls can still point to generally good consumer demand for pork, amid historically elevated beef prices, which should keep a floor under present hog and pork price levels. Hog slaughter will likely rise as the industry gets back to work after the Thanksgiving holiday, with the weekly total probably reaching its annual peak during the week ending Dec. 16. However, wholesale ham demand is likely to be strongest in mid-December, ahead of the ...