The lean hog futures market ended the day mixed but mostly higher within 20 cents of UNCH. April was the standout on the day, having rallied 95 cents. For the week, April is $1.20 higher and has reduced it’s discount to May by $1.48 to $7.42. USDA’s National Average Base Hog price was $79.02, up by 55 cents on Wednesday afternoon. The CME Lean Hog Index was $79.09, up by 18 cents for 3/6.
USDA reduced 2023 pork production by 25m lbs to 27.410 billion. Q1 was down 10 and Q2 was 15m lbs lower.
Converted Census data had 555.7m lbs of pork exports for January, that was 8.9% above Jan ’22.
The April pork cutout contract closed Wednesday $1.32 higher, as the other front months ended 32 to 70 cents higher. USDA’s National Pork Carcass Cutout value for Wednesday afternoon was 64 cents higher to $87.66. USDA’s estimate for federally inspected hog slaughter was 1.427m head through Wednesday. That is 8,000 behind last week’s pace, but is 3k head more than the same week last year.
Apr 23 Hogs closed at $85.750, up $0.950,
May 23 Hogs closed at $93.175, up $0.225
Apr 23 Pork Cutout closed at $92.400, up $1.025,
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. For more information please view the Barchart Disclosure Policy here.
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