Hogs Firm Up on Friday

Lean hog futures ended the last trade day of the week with 35 to 52 cent gains. October was the outlier with a 22 cent pullback by the close. For the week, October hogs were down by a net 3.67% and December by a net 7.9%. The National Average Afternoon Base Hog price was $85.08 in the PM report after a $3.27 drop. The CME Lean Hog Index for 9/28 was 46 cents weaker to $95.14.  

Weekly CFTC data had managed money lean hog traders 23,535 contracts less net long through the week that ended 9/27. That came via 8.5k longs closed and 15k new spec shorts added during the week, and left the group just 41,129 contracts net long – a 12wk low. 

NASS counted a 73.8m head hog inventory on Sep 1. Market hogs were shown as 67.648m head. The breeding herd was 6.152m head. The June August pig crop was 33.581m head – on 11.13 pigs per litter. All were smaller than the average trade guesses going into the H&P report. 

Pork cutout futures went into the weekend with 40 to 50 cent gains. USDA’s National Pork Carcass Cutout value was down by another $1.21 to $97.59 on Friday afternoon. was $1.31 weaker to $97.49. The USDA estimated hog slaughter as 2.526m head for the week through Saturday. That was up from 2.517m head during the same week last year, though YTD slaughter trails last year’s pace by 3.1% with 92.845m head. 

Oct 22 Hogs  closed at $89.225, down $0.225,

Dec 22 Hogs  closed at $76.225, up $0.500

Oct 22 Pork Cutout  closed at $98.200, down $0.350,