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US lean hog futures drop on bearish supply

US lean hog futures fell 2.4 percent on Monday, weighed down by bearish supply concerns, traders said.

3 December 2019, at 11:18am

"The hog market boils down to more of the same. Big supplies, record supplies," said Don Roose, president of Iowa-based US Commodities "With these trade talks still iffy, where are the Chinese? They have been buying a lot of pork from us, but not in the volumes that could overcome the big supply."

Benchmark February lean hogs closed down 2.025 cents at 66.150, hitting their lowest price since 7 August at the Chicago Mercantile Exchange. The contract dropped below its 10-day moving average.

US President Donald Trump on Monday said US legislation backing protesters in Hong Kong did not make trade negotiations with China easier but added he believes Beijing still wants a deal with the United States.

China has stepped up its purchases of US pork in recent months as African swine fever continues to spread through its herd.

Pork prices in China, the world's top consumer of the meat, rose on Monday, the first meaningful rebound in more than a month as consumption increased with colder weather while supplies remained short.