Trump NAFTA pullout fears rattle CME hog futures

From Reuters - January 11, 2018

CHICAGO, Jan 11 (Reuters) - Chicago Mercantile Exchange hog futures on Thursday shed more than 2 percent of their value on Thursday, partly pressured by Canadian government worries that U.S. President Donald Trump intends to scrap NAFTA talks, said traders.

Canadian government sources told Reuters on Wednesday they were increasingly convinced the United States plans to announce it intends to pull out of the North American Free Trade Agreement (NAFTA).

Of greater concern to U.S. pork producers is the potential loss of a lucrative export partner if Mexico leaves NAFTA should Trump decide to trigger the 6-month process to withdraw from the trade pact.

CME hog futures on Thursday settled 2.3 percent lower, and posted its biggest one-day loss since mid-November, as the NAFTA cloud of uncertainty hung over the market.

It shouldnt be a shock that the hogs were lower today given this information, when nearly 30 percent of our exports go to our neighbor to the South, said Global Commodity Analytics & Consulting LLC President Mike Zuzolo.


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