Hedge funds cut bullish hog wagers days before China tariffs

By Simon Casey

Hedge funds made the right call on hogs this week.

Money managers cut their bets on a rally to the lowest in more than two years in the week ending March 20. Three days later, China announced retaliatory tariffs on imports of US pork, a move that sent hog prices tumbling in Chicago.

Net-long positions dropped to 8,029 futures and options, weekly data from the US Commodity Futures Trading Commission showed Friday. Short-only holdings rose to the highest in about 11 months.