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Chicago lean hogs fell by exchange limits on Wednesday, extending a losing streak to five sessions, the longest in a year. Signals that China may slow overseas purchases as its domestic herd rebuilds weighed on prices.
Soybeans also fell on slow U.S. crush and biofuel policy concerns.
Reduced Chinese pork import demand lowers US hog export expectations, pressuring hog prices and soybean meal demand from crushers. Feed buyers face softer livestock pricing signals.
news.bloomberglaw.comKim ChipmanJun 16, 2021After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% over 20.
After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 384 past bearish trade events, Soybean Meal moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and -0.5% over 20.
After 152 past bearish trade events, Soybean Oil moved a median -0.2% over 5 sessions (47% higher; middle half -2.1% to +2.1%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Dated June 16, the same day as the move: soybeans fell on slow US crush and biofuel policy worries, and signs China may slow purchases as its hog herd rebuilds weighed on feed-demand sentiment, which is directly bearish for soymeal.
A five-session losing streak driven by worries that China will slow purchases as its herd rebuilds reduced export demand expectations and fed continued selling.
On June 16 soybeans fell on slow U.S. crush, biofuel policy worries and signs China may slow purchases as its hog herd rebuilds, adding demand-side pressure.
