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Hog futures formed a top the week ending February 25, with summer contracts failing near $80 before plunging for two sessions. The market is pricing in weaker pork demand tied to tough US trade rhetoric toward Mexico and China, even though current pork demand remains strong.
A forecast drop in export demand for pork would weigh on hog prices and reduce demand for hog feed ingredients, with the trade threat acting as the main price driver.
nationalhogfarmer.comDennis SmithFeb 27, 2017After 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.
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.
