Triple Digit Friday Losses in Lean Hogs

Hog futures changed course on Wednesday, and pushed lower on Friday. At the close the front month futures were 1.8% to 2.9% in the red which left the June contract at a $2.20 loss for the week. The USDA National Average Base Hog price was $80.43 on Friday afternoon, up by $1.45. The CME Lean Hog Index for 5/17 was $78.42 after a 62 cent increase. 

CFTC’s weekly data release had managed money funds at a 19,398 contract net short as of 5/16.  That was a 1,728 contract stronger net short through the week given long liquidation. 

Dalian Live Hog Prices in China were 285 yuan weaker this week to 14,655 yuan/MT (~ $94.85 cwt.). China’s General Administration of Customs reported 140k MT of pork imports for April. That was down 3% from last year, though the 670k MT imported YTD is 20% ahead of 2022’s pace. 

Nearby pork cutout futures ended the session $1.52 to $2.05 in the red on Friday. USDA’s National Pork Carcass Cutout Value was $84.38 in the Friday afternoon update. That was 65 cents higher than the prior quote. USDA estimated the week’s FI hog slaughter at 2.408 million head through Saturday, for a year-to-date total of 49.376 million. Last year’s pace was 48.664m head at the same point.  

Jun 23 Hogs  closed at $83.025, down $2.275,

Jul 23 Hogs  closed at $83.125, down $2.475

Jun 23 Pork Cutout  closed at $86.850, down $2.050,