Credit: Shutterstock photoThe short-term cash fundamentals still look very weak into the fall and the cash market should remain in a steady downtrend. However, the October futures will eventual move to the cash market and futures remain at a much wider than normal discount to the cash. This leaves the market vulnerable to spurts of short-covering.
The CME Lean Hog Index as of August 22nd came in at 87.86, down 79 cents from the previous session and down from 91.58 the week before. October hogs closed 20 lower on the session Friday and down 750 points for the week. The market saw some early weakness but managed to hold just slightly above Thursday's contract lows and closed up off of the lows. A turn down in corn prices plus continued talk of the stiff discount to the cash market helped to support.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
