CME lean hog futures hit contract lows on supply and demand issues
Plentiful supplies and weak demand for pork have driven Chicago Mercantile Exchange lean hog futures to life-of-contract lows.
Chicago Mercantile Exchange (CME) lean hog futures reached life-of-contract lows on Monday, according to a report by Mint. The decline is attributed to high supplies and low demand for pork.
CME December lean hog futures fell by 0.70 cent to 58.175 cents per pound, hitting a contract low of 57.775 cents. April 2027 futures also reached a contract low.
Joe Schuele, a spokesman for the US Meat Export Federation, said that China is facing an oversupply of hogs, making it difficult to import US pork profitably. He noted that low-priced domestic products in China are affecting the market.
In the cattle market, CME December live cattle futures dropped 1.250 cents to 219.700 cents per pound, the lowest level since October 5. Conversely, January feeder cattle futures rose by 0.900 cent to 332.675 cents per pound.
The USDA confirmed the first case of bird flu in dairy cattle in Indiana. Meanwhile, the Yakima Health District reported that an individual with underlying health conditions died in Washington after contracting bird flu at a dairy.
The Washington State Department of Agriculture expressed heartbreak over the loss in the farm working community. Officials stated the risk of infection to the general public remains low.