The pig traders’ perspective
A tale of two charts: The December lean hog futures chart continues to favour the bulls as a price uptrend remains in place despite prices backing down from the October high. However, February lean hog futures have seen choppy to lower price action and a price uptrend has been negated on the daily chart.
Global demand for pork remains solid, which should put a floor under the pork market. Rallying stock markets this week are also bullish for the livestock sector, suggesting better consumer demand. However, rising COVID-19 cases in the US and Europe are already prompting business lockdowns in Europe, with the US also facing a “dark winter” of the pandemic. Such will likely cap gains in hog futures in the near term. Pork producers are also dealing with rising feed costs this week.
Source : thepigsite.com