Triple Digit Losses in Hog Futures

After Monday’s continuation from last week’s late rally, the hog market is back to net red for the week via triple digit losses so far for Wednesday. The front months are trading $0.90 to $1.95 in the red so far. The National Average Base Hog price was 9 cents firmer to $75.54 in the AM report. The 3/27 CME Lean Hog Index was down another 32 cents to $76.25.

Trader estimates ahead of Thursday’s quarterly Hogs and Pigs report expect the herd was around 72.834m head on March 1st. That would be 0.2% larger than last year, with the full range of estimates from -1.4% to +1%. The breeding herd is estimated 0.5% higher on average, and Dec-Feb farrowings are figured 1.2% higher on average. Farrowing intentions for Mar-May average 0.8% above last year ahead of the report. 

Pork cutout futures are also down by triple digits in the contracts that have action through midday. USDA’s Pork Carcass Cutout value was quoted at $81.16 on Wednesday morning, up by $1.16. Bellies bounced back by $13.54 to $97.18. USDA estimated the FI hog slaughter at 480,000 head for Tuesday, setting the week’s total at 966k. That compares to 944,000 last week and 963,000 during the same week last year. 

April 23 Hogs  are at $76.925, down $0.825,

May 23 Hogs  are at $84.700, down $1.300

April 23 Pork Cutout  is at $81.975, down $0.600,