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Hog market update - mixed offerings due to uncertain Chinese demand

In the hog market, futures ended mixed as large supplies and ongoing uncertainty about Chinese demand continued to hang over the market, analysts said.

3 March 2020, at 11:08am

According to reporting from Reuters, meat companies slaughtered an estimated 495,000 hogs on Monday, up from 463,000 a year ago, according to the USDA

Traders are watching for signs of accelerated Chinese buying of US pork to reduce large American supplies. China, the world's top pork consumer, agreed to increase purchases of US farm goods as part of the Phase 1 trade deal signed in January. Under a recently announced program, Chinese importers can begin registering with the government for waivers of tariffs imposed during the countries' trade war.

China needs to increase pork imports from around the world after a fatal pig disease, African swine fever, decimated its herd.

"We still haven't got the China buying concern fixed yet," Allendale's Nelson said.

CME April lean hogs, the most active contract, settled 0.525 cent higher at 62.800 cents per pound. June futures were down 0.200 cent at 77.025 cents.

Cash cutout prices were $2.43 per cwt higher for carcasses and $3.22 higher for hams, according to the USDA.

Read the original story here.