Chicago Mercantile Exchange (CME) lean hog futures experienced a recovery from contract lows as a result of technical buying, according to traders. The recent downward trend in prices may also generate interest in the export market, with U.S. pork becoming increasingly competitive on a global scale. StoneX brokerage highlighted that international trade is beginning to shift towards U.S. pork due to its affordability, signaling potential opportunities for the industry.
Meanwhile, cattle contracts also closed higher, benefiting from the strength observed in the cash market. The decline in corn futures, which reduces feed costs for cattle producers, provided additional support to the cattle market.
The June lean hog futures, the most actively traded contract, settled 1.1 cents higher at 84.4 cents per pound. Technical support was found at the lower end of the 20-day Bollinger range after reaching a new low of 82.725 cents.
In other news, Tyson Foods Inc announced plans to resume pig slaughtering operations in mid-May at its fire-damaged pork plant in Madison, Nebraska. The plant was temporarily shut down due to a fire that occurred two weeks ago.