Lean hog futures are working near their highs into midday with gains of 15 to 45 cents so far for Thursday. USDA’s National Average Base Hog price was 38 cents higher to $79.86. The 12/20 CME Lean Hog Index was 29 cents weaker to $80.57.
Going into NASS’s Hogs and Pigs report, analysts surveyed expect the Dec 1 inventory will be 1.5% lighter than Dec 1 ’21. That implies 73.329m head. The full range of estimates is for between 98.3% and 98.8% of last year. The breeding inventory is expected to be 0.2% lighter with market hogs 1.6% lower yr/yr.
USDA reported 58,667 MT of pork was sold for export during the week that ended 12/15. That was the most sold since the week that ended 3/25 of ’21. Mexico was the top buyer with 33.4k MT bought for 2022 delivery. USDA reported 16.1k MT were sold for 2023 delivery, led by 4.8k MT sold to China. Forward sales sit at 16k MT, which is 23% ahead of last year’s pace.
Pork cutout futures are in the red with 15 to 87 cent losses at midday. USDA’s National Pork Carcass Cutout value was up by $5.09 to $87.54. USDA estimated the FI hog slaughter as 1.428m head for the week through Wednesday. That is down 33k head from last week’s pace, but is up 3k head from the same week last year.
Feb 23 Hogs are at $88.850, up $0.450,
April 23 Hogs are at $95.725, up $0.450
Feb 23 Pork Cutout is at $94.900, down $0.875,
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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