Monday Hogs to Follow a Week of Gains

Lean hogs added $0.45 to $1.05 to the week’s rally on Friday. For the week the October contract gained $3.15 (3.5%). Front month wheat futures are $0.32 to $1.10 in the black. The USDA National Average Base Hog price for Friday afternoon was $3.70 weaker to $91.28. The 9/7 CME Lean Hog Index was $100.26, after another $1.22 drop.  

CFTC reported managed money firms were 9,965 contracts less net long in lean hogs through the week that ended 9/6. The long liquidation left the group 45,498 contracts net long – a 7-week low. 

Pork cutout futures closed weaker in the October contract on Friday, but up 10-20 cents in the other nearby contracts. USDA’s National Pork Carcass Cutout value was $0.43 stronger in the Friday report to $102.87. USDA reported their estimated federally inspected hog slaughter for the week through Saturday was 2.243m head after Labor Day. That is 5,000 head lighter than the same week last year, as the YTD pace trails last year by 3.3%. 

Oct 22 Hogs  closed at $93.175, up $1.050,

Dec 22 Hogs  closed at $83.125, up $0.450

Oct 22 Pork Cutout  closed at $102.775, down $0.175,