Triple Digit Hog Weakness

Lean hog futures are trading with $1.17 to $2.37 lower through the Friday midday – that has December down by +$4 cents for the week. The AM National Average Base Hog price from USDA was down by $7.71 to $86.21. The CME Lean Hog Index for 9/20 was $97.96, down by 40 cents. 

The USDA’s Cold Storage report showed pork inventories increased 5.561m lbs (1.1%) through August to 532.039 million. The pork stock was also 17% above last year, though July was 19.2% above July ’21. The monthly update showed 32.49m lbs of bellies in the cooler. That was nearly double last year’s inventory though only 1.44m lbs above Aug 2020. 

Pork cutout futures are trading the Friday session with triple digit losses of as much as $2.50 through midday. USDA’s National Pork Carcass Cutout value faded with a $2.30 drop to $101.58 on Friday morning. Bellies were quoted $15.82 weaker at $124.78 cwt. USDA estimated the WTD FI hog slaughter at 1.929m head through Thursday. That compares to 1.917m head during last week and 1.874m head during the same week last year. 

Oct 22 Hogs  are at $93.000, down $1.125,

Dec 22 Hogs  are at $83.450, down $2.225

Oct 22 Pork Cutout  is at $101.750, down $1.250,