News of a Russian ban on U.S. pork might undercut CME lean hog futures upon their Monday morning opening. Strong midweek cash market gains and a jump in ham prices apparently powered the Chicago market upward in Friday morning, but a substantial weekly slaughter increase and slipping cash prices undercut swine futures at the Friday close. As in the cattle pit, repeated discussions of the impact of a Russian ban on U.S. products make predicting a reaction to the Friday afternoon announcement of that ban problematic. April hogs fell 0.60 cents to 88.75 cents/pound last Friday, while June lost 0.60 cents to 97.50.
Cotton futures fell rather substantially in early-week trading. We saw no news that might have explained the drop, so we suspect the decline was powered by technical selling. That is, the nearby March contract seemed set to break out to the upside late last week, but stalled instead. We suspect the white fiber market will have to undergo a period of consolidation before attempting to break out again. March cotton had slipped 0.50 cents to 82.48 cents/pound early Monday morning, while December had slumped 0.39 cents to 81.07.