Lean Hog Comments via Allendale

African swine fever in China is not likely going to impact pork demand significantly from the US. First reaction by Chinese consumers is they will become skeptical of the quality and reduce consumption. Chinese pork supplies are burdensome, as it is in the US, causing poor grower profit margins and a possible liquidation environment, creating more pork. Demand could come from other pacific rim countries if they shut off buying from China.

Lean hog futures in recent days provided signals that it would like to rally but runs into heavy selling. The October futures contract has key support at 50.17, the most recent low. A close below that level would suggest retest of contract lows.

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