Fridays Russian news also seem to depress CME lean hog futures, since the drug concerned, ractopamine, is probably more heavily used for hogs than for cattle. Large seasonal losses in both cash hog and pork values probably weighed upon the market as well. Thus, February hogs fell 0.90 cents to 83.55 cents/pound on Friday, while June futures dropped 0.70 cents to 98.32 cents/pound. Anticipated cattle weakness may also weigh upon hog futures this morning, but the very modest drop in pork cutout Friday afternoon probably surprised traders. Hog futures may open more firmly than do their counterparts in the cattle pit.
Cotton futures ended last week mostly higher in response to a very favorable weekly export sales report on Thursday. The underlying suggestion that cotton demand is proving comparatively robust these days was seemingly reinforced Sunday night, when an Indian report indicated that its (April 2012-March 2013) cotton yarn exports to China could post an annual increase of 20%. It will be interesting to see if the USDA confirms that strength on Tuesday’s supply/demand report. March cotton rose 0.10 cents to 73.89 in early morning trading, whereas new crop October was unchanged.