Brutal day for most of the commodity markets across the board but Lean Hogs specifically saw steep declines today, particularly in the June contract falling 3.3% Settling below 100 at 98.225. A rising dollar and a very volatile, shaky stock market gave sellers more reason to add to the selling pressure and discouraged any buying participants from entering. The cash market is not immune to the overall negative sentiment in the market as AM cutouts fell $2.18 to $86.19 on a light 159 loads.
African Swine Flue could slow down the violent selling action that we are seeing as ASF is starting to infect hogs in 17 different Chinese provinces. These infections have rapidly increased over the last month, already totaling the amount of cases from last year. With an increase in these cases, along with higher temperatures that are likely going to lead to more infections in my opinion, the import demand from China should increase here in the near term lending support to the market.
The CME lean hog index for Monday, Mar 13 is reported at $79.89, up 3 cents from Friday, while the preliminary figure for futures rose another 4 cents to $79.93. And yet, futures have fallen $2 from Monday’s levels.
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