Lean Hogs Futures Market News and Commentary
Friday hog futures trading ended with a rally. Prices closed 5 to 30 cents in the black, while October rallied to close $2.52 higher ahead of the NASS report. USDA’s National Average Base hog price for Friday afternoon was 40 cents higher to $76.93. The 9/22 CME Lean Hog Index was $91.89, after a 76 cent drop.
The weekly CoT report showed lean hog spec traders were 8,063 contracts less net long as of 9/21. The week of long liquidation left the group at 55,858 contracts net long, the weakest net long since February.
The quarterly Hogs and Pigs update from NASS showed a 75.352m head herd as of Sept 1. That was down 3.082m head yr/yr or 3.9% but was up 1.3% from last quarter. Analysts were expecting a 2.7% drop on the high end. The breeding herd was down 2.25% yr/yr, compared to the 1.1% average guess, at 6.19m head. The June-August pig crop was 33.9m head for an 11.3 pigs per litter. That was up from 10.95 pigs/litter last quarter and 11.06 last year as a new record for... Read more