Credit: Shutterstock photoThe market remains in a steep downtrend but with the stiff discount, futures remain vulnerable to short-term corrective bounces. The CME Lean Hog Index as of August 21st came in at 88.65, down 97 cents from the previous session and down from 91.84 the week before. This leaves October at a 16 cent discount to the cash market. Last year, the discount was 14.6 cents at this time of the year and the 5-year average discount is 6.9 cents so the current spread is historically wide. While the discount provided some support, the sharp drop in pork product on Wednesday (down 3.3%) was enough to spark talk of continued weakness in the cash.
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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.
