Lean hog futures are trading within 60 cents of UNCH so far for the midweek session. Dec, June ’23 and July ’23 are down by as much as 22 cents. The spring delivery months are gaining 20 to 55 cents. The USDA National Average Base Hog Price for Wednesday morning was $1.64 higher to $87.75. The CME Lean Hog Index was down another 57 cents to $90.88 on 11/4.
Pork production estimates from the monthly WASDE report was 27m lbs lighter for a ’22 total of 27.121 billion lbs. Last year’s production was 27.675b lbs. Looking to 2023, the USDA expects 27.345b lbs of pork output, which is even with their prior forecast.
Pork cutout futures are also mixed within 47 cents of UNCH. The USDA Pork Cutout Value was $1.92 weaker in the PM report to $95.03. USDA estimated FI hog slaughter at 985k head for the week through Tuesday. That is up 17k head wk/wk.
Dec 22 Hogs are at $85.350, down $0.225,
Feb 23 Hogs are at $89.100, up $0.600
Dec 22 Pork Cutout is at $95.825, down $0.150,
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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