Lean hogs extended their rally into the weekend with another $0.20 to $2.10 gains in the front months. December was up the most on Friday, but is still a $1.40 discount to Feb. Through the week, December hog futures rallied $6.87. The USDA National Average Afternoon Base Hog Price was $88.89 on Friday, down by $5.85. The CME Lean Hog for 10/19 was $93.76, up by another 56 cents.
Managed money funds were buying lean hogs with 6.6k new longs and 8.2k fewer shorts through the week that ended 10/18 – according to the Commitment of Traders report. That left the group 35,787 contracts net long.
Front month pork cutout futures went into the weekend $0.67 to $1.12 higher. The Pork Cutout Value from Friday afternoon was $2.93 lower to $100.94. Bellies dropped by $10.14 cwt. USDA estimated the FI hog slaughter at 2.571m head for the week through Saturday. That is up 26k head from last week, but 35k head below the same week last year. YTD slaughter trails last season by 3%.
Dec 22 Hogs closed at $89.125, up $2.100,
Feb 23 Hogs closed at $90.525, up $1.425
Dec 22 Pork Cutout closed at $98.000, up $1.125,
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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