Hogs Drop to Red for the Week

Friday weakness moved the week’s net move back to red territory as front month lean hog futures fell triple digits into the long weekend. The October contract closed 62 cents in the red through the week Friday to Friday. The deferred contracts were only 10 to 52 cents lower on Friday. The USDA National Average Base Hog price for Friday was $97.68 after slipping another $2.07. The CME Lean Hog Index was $106.26 on 8/31 after another $1.36 drop. 

The Commitment of Traders report showed managed money was 9,344 contracts less net long in lean hogs during the week that ended 8/30. The long liquidation left the group 55,463 contracts net long. 

Pork cutout futures ended the session with $0.70 to $1.60 losses on Friday into the Labor Day weekend. USDA’s National Pork Carcass Cutout value for Friday afternoon was $102.25 after a 39 cent bounce. Bellies were still $8.62 weaker on the day to $137.04. USDA estimated FI hog slaughter at 2.350m head for the week through Saturday. That was 55k head below last week and 35k head lighter than the same week last year. YTD slaughter is estimated at 83.016m head, a 3.4% decline from last year’s pace. 

Oct 22 Hogs  closed at $90.025, down $1.925,

Dec 22 Hogs  closed at $82.700, down $1.075

Oct 22 Pork Cutout  closed at $100.750, down $1.600,