Train wreck in lean hog futures in US

Published Jan 13, 2023

Tridge summary

The lean hog futures market has seen a downturn, hitting a three-month low due to bear control, with the CME lean hog index dropping by 48 cents to $75.96. This is part of a seasonal price decline, with an increase in hog supply due to packer operations cutbacks. However, a rebound is expected with the beef prices remaining high. The USDA has reported a decrease in pork net sales and exports, but has invested over $12 million to expand independent meat and poultry processing capacity in Ohio, Michigan, and Minnesota. Meanwhile, the UN FAO global food price index has fallen for the ninth consecutive month, with only cereal grains and meats showing increases from the previous year, while vegetable oils saw a significant decrease.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The lean hog futures market continued to careen lower this week, with prices hitting a three-month low. Bears are in firm command, to suggest more downside pressure in the futures market in the near term. Meantime, Cash hog fundamentals continued to weaken this week. The latest CME lean hog index is down 48 cents to $75.96 (as of Jan. 10), extending its seasonal price slide. Until cash hog market fundamentals appear to post seasonal lows and start to strengthen, there will be additional downside risk in lean hog futures. Unlike the fall months, when low hog weights suggested supply tightness, hog supplies are plentiful at present. That reflects three weeks of packer operations cutbacks due to holidays. Still, expect seasonal cash and futures price strength in the coming weeks and months—especially with beef prices at historically elevated levels. USDA Thursday reported US pork net sales for 2023 marketing year, which began January 1st, totaled 13,100 MT were primarily for Mexico ...
Source: Thepigsite

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