Hog Futures Heading for Biggest Annual Gain Since 2010

Hog futures traded at the Chicago Mercantile Exchange have risen as high as 7.5% year-to-date, heading for the biggest gain in four years. Hog futures are currently trading at $0.9040 cents per pound, down $1.25 from yesterday’s close.

This year there have been reportedly five-million fewer hogs sent to slaughter so far, which in turn has reduced the number of whole hams sent to market. To help compensate for the reduced number of hogs (for hams), pork producers have fattened-up the animals by 17%+ to increase the size of the hams to be offered as “half-hams” once at the grocery stores.

With the (hog futures) price increase we have seen, producers are doing all they can to put weight on the animals,” stated Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his fundamental analysis insight regarding the current hog futures situation. Riordan adds, As the tale goes, however, the best antedate for high meat prices is “high meat prices.” We should see a seasonal high in hog futures after the holidays.”

The trend for hog futures is newly emerged as up. I was in-and-out of hog futures earlier today attempting to buy them on a drop in price which started earlier this week.

ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.