According to traders, Monday, July 1, futures for lean pork amid a combination of technical purchases, falling corn prices and muffled optimism about the resumption of trade negotiations between the US and China, rose.
“Futures for Lean Hog, the most popular pork in the United States, received support from hopes to increase Chinese purchases after successful negotiations over the weekend,” wrote Arlan Suderman, chief economist at INTL FCStone Financial Services, in a client note.
However, some livestock traders were skeptical of the prospects of a deal with China, the world's largest consumer of pork.
“For me, this is another futile headline for a trade war. We've seen this song and dance before, ”said Craig Van Dyke of Top Third Ag Marketing, a full-service commodity broker specializing in farm risk management.
Van Dyke also said that one way or another, and lean pork futures should have recovered after falling in May and June.
Livestock futures on Monday July 1 closed in different directions, while fodder livestock rose in response to a sharp decline in prices for corn, which is the main livestock feed.