Hogs close with a 30 cent loss in the Dec contract, but 2 to 65 cent gains in the other nearbys. The USDA National Average Base Hog Price for Wednesday was $0.48 higher to $87.70. The CME Lean Hog Index was down by another 60 cents to $90.28 on 11/7.
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 were also mixed with a loss in Dec and May contracts, while the Feb and April delivery months closed 47 to 77 cents higher. The USDA Pork Cutout Value was $1.02 weaker in the PM report to $94.12. USDA estimated the week’s FI hog slaughter at 1.478m head through Wednesday. That compares to 1.456m head last week and 1.425m head from the same week last year.
Dec 22 Hogs closed at $85.275, down $0.300,
Feb 23 Hogs closed at $89.150, up $0.650
Dec 22 Pork Cutout closed at $95.700, down $0.275,
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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