Hog Futures Resilience May Be Felt by Low EU Feed Volume

Hog futures newfound strength may be tied with what is going on with the pork industry in the European Union – a decade low feed demand poised for another significant decline. Hog futures are down .42 cents today currently trading at $67.30 (CWT) at the Chicago Mercantile Exchange.

There is reportedly a contraction happening in the EU pork industry in part by Russia banning imports which is helping to cause compound feed used by pig farmers to be expected to drop 2-3% this year. Hog prices in the EU – according to the government’s reference price – touched a 10-year low of E126.02 per kilogram just last month.

While the European Union continues to see hog (futures) prices falling, here in Chicago a support-base had been made between mid-November to mid-December and has been rallying since,” said Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, sharing her fundamental assessment of the hog futures market. Bourbeau added,This reflection in demand can only mean one thing: our US hog (futures) market is preferred over the EU pork industry.”

Hog futures trend is up since early this month. This could be a technical bounce for hog futures in an overall down-trend, but right now pork prices are in the middle of six-month highs and lows.

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