The key reversal for June hogs is a bullish technical development, but the premium to the cash market is a limiting force.
Read MoreApril hogs as of February 8th were holding a premium of 10.23 to the cash market as compared with a premium of 15.13 last year but the 5-year average premium is just 6.00.
Read MoreWhile the futures market is pricing in a much stronger than normal seasonal advance for June hogs, the cash fundamentals do not appear to be strong enough to support this move.
Read MorePresident Trump is making a move to impose a 5% tariff on all Mexican goods on June 10th (80% of their exports go to the US) and to increase the tariff by 5% each month to reach 25% by October until Mexico agrees to help the US on the crisis at the border. If Mexico retaliates…
Read MoreWe continue to believe that African swine fever (ASF) has had a massive impact on pork production in China and that it will take a few years for the industry to recover. Over the next year, China is likely to be a consistent and active buyer of pork on the world market. This is likely to hold the hog market in an uptrend and also drive global pork exports to record amounts over the next year.
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