CME Group set a new record Thursday in lean hog futures trades at 98,432 contracts, according to a spokesman for the exchange. The prior record of 83,919 contracts was set July 11, 2011.
“Volumes were driven by higher cash pork prices and bullish technical price movements,” according to Damon Leavell, CME Group senior director, corporate communications.
Price swings in feed inputs such as corn and soybean meal is seen as one reason for the increase in trade. “Higher hog futures volumes are expected due to volatility in corn prices through this summer along with improving demand for pork in domestic and export markets,” Leavell said. Volume was heaviest on the July contract.
Higher volumes in lean hog futures contracts are commonly seen this year, according to Leavell. Average daily volume for all lean hog contracts in May reached 60,000. Average trade in May 2011 was 42,000.