Futures for lean pork on the Chicago Mercantile Exchange (CME) on Monday, July 8, closed lower for the third time in a row, the reason, according to analysts, is the pressure that abundant stocks of pigs and pork in the United States continue to exert on the market.
The most active August contract for lean pork for delivery in August to CME ended in a decline of 0.975 cents to 76.075 cents a pound after falling to 75.575 cents, the lowest since June 27.
“The market is overloaded with large supplies. Demand is not high enough, ”said Don Roose, a representative from the Iowa product group.
Livestock futures also declined, retreating after a strong closing Friday, July 5, which traders attributed to higher-than-expected livestock deals in the northern states, including Nebraska and Iowa.
“This is a market struggling with protein supplies that are simply large, and domestic consumption is not enough to absorb it,” analysts say. The CME index of futures for livestock delivery in August fell 0.850 cents to 106.150 cents a pound, and for October deliveries 0.675 cents to 107.400 cents.
CME feeder cattle futures for August delivery rose 0.075 cents to 138.900 cents a pound.
