Lean hogs ended Monday with $0.80 to $2.45 gains in the front months amid hopes for expanded exports to China. The deferred contracts were $0.70 to $1.15 in the red. That left the December to April spread at a $5.10 April premium. The National Average Base Hog price for was $2.75 weaker in the Monday PM report to $84.14. The CME Lean Hog Index was 8 cents weaker on 10/06 to $92.65.
Dalian Live Hog Prices gapped higher out of their week long holiday break on a surge in volume that took the front month (November) contract to the highest level since May of 2021 at 24,650 yuan. At the close, the more active January contract ended 5.95% in the black at 23,765 yuan/MT (~ $1.50/lb).
Pork cutout futures were $0.67 to $2.22 stronger in the front months through April ’23 which closed 32 cents weaker. The Pork Cutout Value from USDA was $101.39 in the PM report, down by 15 cents. CME’s Fresh Bacon Index was $4.65 lower to $159.02 on 10/7. The USDA estimates Monday’s FI hog slaughter as 488,000 head, up from 465,000 last week and 474k head during the same day last year.
Oct 22 Hogs closed at $93.750, up $0.800,
Dec 22 Hogs closed at $79.600, up $2.450
Oct 22 Pork Cutout closed at $102.425, up $0.600,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
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