The big Monday cattle rally probably pulled CME lean hog futures upward as well, although bulls in the swine pit could also point to the discount built into nearby hog futures with just over two weeks before the February contract expires. However, the cash markets are not cooperating well with those in the bullish camp. For example, the CME lean hog index seems set to turn downward when the official quote is released Wednesday morning. Moreover, Tuesday afternoon cash reports imply further short-term losses. On the other hand, a big surge in pork loins boosted cutout after the Chicago pit session had ended, which may bode well for the Wednesday opening. February hogs had slipped 0.07 cents to 87.10 cents/pound at the Tuesday close, whereas June futures had climbed 0.52 cents to 98.17.
Grain, livestock markets decidedly mixed on Tuesday
- Undercover dairy video leads to animal abuse allegations
- Answering the call to bring dairy to food banks
- Research shows consumer demand for transparency on food
- Lack of farm bill leaves farmers to face uncertainty in 2014
- Ag markets moved mostly lower on Tuesday
- Shrinking feed costs push 2014 milk prices higher