Lean Hogs Futures Market News and Commentary
Going into Memorial Day weekend, lean hog futures closed $1.00 to $1.37 lower, save for June hogs which were 57 cents lower to $58.77 cwt. The CME Lean Hog index was another $1.39 lower on May 20, at $64.59. USDA National Average Afternoon Base Hog price was $1.42 higher to $39.37. The Commitment of Traders report showed managed money funds were 9,370 contacts net long on May 19. That was down 2,861 contracts from their previous net long on net new selling. Lean hog spec traders have been net long for 22 consecutive weeks, their previous net long lasted for 36 weeks. The National Pork Carcass Cutout Value was $96.75 on Friday after a $1.10 drop. The primals were mostly lower on Friday, save for Loins which were up $8.06 to $153.35. USDA estimated WTD hog slaughter under Federal Inspection at 2.130m head through Saturday. That is up 32k head from last week, but 180k below the same week last year. YTD hog slaughter is 50.09m hogs, compared to 50.65m from last year’s pace.
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