# Pendulum swings from discount to premium … why?

> Columnist Dennis Smith says lean hog futures rallied about 660 points in three sessions to Aug. 20 after trading at deep discounts to cash in July. He attributes the move to NAFTA talks, upcoming US-China trade talks, and the discovery of African swine fever in China rather than a change in near-term fundamentals.

- Date: 2018-08-27 · published 2018-08-27T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/63679-pendulum-swings-from-discount-to-premium-why
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

The rally reflects expectations that trade and disease developments could change longer-term hog supply and demand, which keeps feed buyers exposed to volatile hog price swings.

## Read by commodity

- HOGS: bullish ▲

## Sources

- nationalhogfarmer.com: https://www.nationalhogfarmer.com/market-news/pendulum-swings-from-discount-to-premium-why-

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.