Hogs closed with another triple digit loss on Friday. Futures were 2.8% to 3.8% weaker, which completely erased last week’s move. July futures printed a new contract low on Friday. Friday’s National Average Base Hog price was $1.10 weaker to $70.89. CME’s Lean Hog Index for 5/02 was $73.78, up by 76 cents.
The weekly CFTC data had massive short covering from the funds’ lean hog position. As of 5/2 the 11.4k (19%) fewer spec shorts reduced their net short position to just 6,823 contracts.
Pork cutout futures were $1.40 to $3.57 weaker on Friday. USDA’s National Pork Carcass Cutout Value was up by $1.75 on Friday afternoon to $81.87. USDA estimates FI hog slaughter at 2.447m head for the week through Saturday. That is up 60k head for the week on a large Saturday kill.
May 23 Hogs closed at $75.525, down $1.550,
Jun 23 Hogs closed at $83.775, down $3.375
May 23 Pork Cutout closed at $80.800, down $1.800,
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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