Lean hog futures on the Chicago Mercantile Exchange (CME) fell on Thursday, reflecting market anxieties over a potential economic slowdown and its impact on pork demand. This downturn comes amid broader signals of a cooling US economy, despite ongoing strength in the jobs market.
CME lean hog futures saw a decline, with the July contract closing 2.625 cents lower at 91.150 cents per pound. Market analysts noted that concerns about weakened pork exports, particularly due to the trade tensions between China and the European Union, are contributing to the bearish sentiment. Don Roose, president of US Commodities in West Des Moines, Iowa, highlighted that the trade dispute could result in an oversupply of pork in the global market, exerting downward pressure on prices.
Traders are also closely monitoring the latest export data from the US Department of Agriculture (USDA), which has been delayed until Friday due to the Juneteenth federal holiday. This data is expected to provide further insights into the current state of pork exports and overall demand.
Despite these concerns, wholesale beef prices firmed on Thursday, with the USDA reporting higher boxed beef cutout prices for both choice and select cuts. However, the focus remains on the hog futures, which are under pressure from both economic and international trade factors.
