Front month lean hog futures worked lower on Thursday with Dec futures getting within 20c of a limit drop on the day’s low. Dec hogs ultimately lost $3.37, with $0.87 to $2.85 losses in the other front months. The USDA National Average Base Hog Price weakened $6.99 on Thursday afternoon to $91.99. The 10/25 CME Lean Hog was $94.47, after a 34 cent dip.
USDA showed weekly pork export sales of 20,347 MT, led by 16.9k MT booked by Mexico and 5.6k MT to China. That was, however, less than half of the previous week’s 40,813 MT. Weekly export shipments of 30.7k MT were a 16-wk high, for an accumulated export of 1.19 MMT. That is still below last year’s pace by 19.3%.
Pork cutout futures were firmer for December, only giving back 95 cents on the day, but dropped 1.5% to 3.7% in the other front months. The USDA Pork Cutout Value was 72 cents stronger in the PM report to $98.46. USDA estimated the week’s FI hog slaughter at 1.948m head through Thursday. That is even with last week’s pace and is up 23k head from the same week last year.
Dec 22 Hogs closed at $85.125, down $3.375,
Feb 23 Hogs closed at $88.150, down $2.850
Dec 22 Pork Cutout closed at $95.500, down $1.225,
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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