Hog futures 📈

Chicago Mercantile Exchange (CME) lean hog futures fell on Wednesday on profit-taking after a two-session climb and pressure from softening cash hog prices.

• The cash market is belly-flopping, getting close to futures. The discount (for futures) was historically wide, and it's narrowing.
• Hog futures have a seasonal tendency to decline in the fall, as cooler weather helps hogs gain weight, bolstering supplies of pork.
• Wholesale pork prices firmed a bit after plunging last week, as carcass value went up.

In the cattle markets, CME live cattle futures also declined, but feeder cattle closed mixed, with nearby contracts firming slightly.

• In the wholesale beef market, choice and select cuts fell.

Finally, just as a heads-up, the USDA is working to overcome technical difficulties in the process of launching a new reporting system for data on export sales.