Source: Jim Wyckoff, The Pig Site, 14 January 2022, photo credit: 123RF/vershininphoto
US lean hog futures prices took a nose-dive this week. Traders may be reacting to the slower advances in cash hog markets lately, but February futures’ chart breakdown over the past three sessions implies the industry is growing less
February futures were trading over $10 above the CME lean hog index early this month but ended Tuesday about $2.75 over that cash equivalent price (which futures cash-settle against). Weakness reflects industry concerns over the wave of Omicron infections hurting US and/or global demand. It may also reflect worries that packers will have to continue slowing slaughter rates due to worker absenteeism, or in a worst-case scenario, plant shutdowns forced by widespread infections.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.
