December hogs rallied $4.60 of their $4.75 limit at the high of the day, and closed with a $4.07 gain. That took the contract back to October 27 levels. The other front months also closed higher, but the gains dwindled to less than $1 by July ’23. December is now a $2 discount to Feb. The USDA National Average Base Hog Price was down by 41 cents to $84.77. The CME Lean Hog Index was down another 89 cents to $91.45 on 11/3.
Pork cutout futures also rallied with $1.62 to $2.35 gains in the front months. The USDA Pork Cutout Value for Monday was $0.23 higher to $96.95. USDA estimated FI hog slaughter for Monday was 494k head. That compares to 486k head last week and 469k head during the same week last year.
Dec 22 Hogs closed at $87.050, up $4.075,
Feb 23 Hogs closed at $89.050, up $2.625
Dec 22 Pork Cutout closed at $96.200, up $2.325,
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.
