The lean hog futures market is adding another 15 to 82 cents to the upside after a strong rally developed midweek. Dec and July ’23 contracts are the exception, currently trading down by 12 to 30 cents. The USDA National Average Base Hog Price dropped another $3.18 in the AM report to $81.88. The 11/30 CME Lean Hog Index was $83.24 after a 65 cent dip.
Weekly FAS Export Sales data showed pork bookings were 20k MT during the week that ended 11/24. That was down from 45k MT sold last week and was less than half of the sale during the same week last year. Mexico was the top buyer with 11.8k MT. The week’s export shipment was 29.7k MT, for a season total 1.342 MMT. That trails last year’s pace by 18%.
Pork cutout futures are red through midday, despite the hog rally continuation. Losses are limited to 75 cents on the board so far. USDA’s National Pork Carcass Cutout value was $2.62 higher to $89.14 on Friday morning. USDA estimated the FI hog slaughter for the week through Thursday at 1.966m head.
Dec 22 Hogs are at $82.750, down $0.375,
Feb 23 Hogs are at $89.425, up $0.225
Dec 22 Pork Cutout is at $89.900, down $0.750,
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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