World: Lean hog futures market looking heavy

Published Nov 22, 2024

Tridge summary

The article provides an overview of the current state of the Lean hog futures market and the pork industry. It highlights a decrease in future prices from October highs, with the CME lean hog index experiencing a decline for the eighth day in nine days, reaching $87.83 on Nov. 19. The market's technical outlook is heavy, with further declines in cash indexes expected. In terms of pork sales and exports, there have been variations, with China's imports experiencing a decrease compared to the previous month and year. Production forecasts for the latter part of 2024 and the beginning of 2025 have been adjusted, with hog prices projected to increase while production may decrease due to a slower slaughter pace and reduced availability of lighter hogs. Additionally, the article provides an outlook on future futures prices for December lean hog futures, January soybean meal futures, and March corn futures, showing a range of prices with mostly sideways movements.

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

Original content

December Lean hog futures prices have backed down from the October contract high and prices are now in a fledgling downtrend on the daily bar chart. The market is looking “heavy” from a technical perspective. A price uptrend on the daily bar chart has been negated. Fundamentally, the latest CME lean hog index is down another 26 cents to $87.83 as of Nov. 19, the eighth decline in the last nine days. December hog futures finished Wednesday $7.305 below the cash index, suggesting traders expect further decline in the cash index in the near term. Peak US consumer pork for the year demand has is now past. Pork: Net sales of 18,100 MT for 2024 were down 9 percent from the previous week, but unchanged from the prior 4-week average. Increases were primarily for Mexico (4,100 MT, including decreases of 300 MT), South Korea (3,300 MT, including decreases of 700 MT), Japan (2,000 MT, including decreases of 1,100 MT), Colombia (1,900 MT, including decreases of 800 MT), and Canada (1,500 MT, ...

Source: Thepigsite