Lean hog contracts closed in the red after Friday’s trading session. However, some analysts say the near-term story for the hog market is bearish.
John Payne, an analyst with Daniels Trading says there’s still a huge amount of U.S. pork out there.
“We have a record amount of slaughter and we have high weights,” says Payne. “That turns into a lot of pork.”
Payne says short-term markets will have support. However, he believes it could be a different story come fall.
“The market in our opinion is setting up to be very, very overvalued,” says Payne. “That’s especially because of the amount of supplies we are going to have.”
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