ANALYSIS: CME Hog Futures Fall to Fresh Lows on Dull Domestic Demand

Lean hog futures on the Chicago Mercantile Exchange plummeted to new contract lows Friday as hog farmers and pork packers continue to battle deeply red margins and dull domestic pork demand. 

The most actively traded June contract rounded out last week with a $3.375 loss at $83.775 per cwt, a 23% decline from the start of the year. While the futures board continues to anticipate a seasonal increase in prices during the summer months, the advances have slowed drastically from what was anticipated in early 2023 amid a clouded outlook for pork demand heading into peak grilling season. 

On the year so far, the cash market has declined by about 5.1% and is 29% below year-ago levels, based on USDA’s national weighted average quotes....

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