CME Group to raise hog futures trading limits as pig virus fuels volatility

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CME Group to raise hog futures trading limits as pig virus fuels volatility
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CME Group Inc said on Thursday it plans to increase the daily trading limits for...

FILE PHOTO: A man enters the CME Group offices in New York, U.S., October 18, 2017. REUTERS/Brendan McDermid

The spread of African swine fever in China, the world’s biggest pork consumer, has fueled swings in futures prices by raising expectations for increased Chinese demand for U.S. pork. Uncertainty persists about the size and timing of sales, after Beijing agreed to buy more U.S. agricultural goods as part of an interim trade deal signed in January.

“The spread of African swine fever and the ongoing US/China trade war have combined to produce very high levels of volatility,” CME Group said in a memo this month. The limits will be reset annually on the first trading day in September, based on previous daily settlement prices, according to the notice. The reset limit will remain in effect through the last trading day in August of the next year.

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