Hogs ended the Friday session with 20c to $2.42 gains led by the July contract. USDA’s National Average Base Hog price for Friday afternoon dropped by $8.60 to $85.52. The CME Lean Hog Index for 6/7 was 76 cents stronger to $83.80.
The $7.50 lean hog rally through the first week of June was attributed to managed money short covering. The latest CoT update had the group with 13.8k (19%) fewer short contracts. That reduced the group’s net short to 16,173 contracts as of 6/6.
USDA made little changes to their pork production outlook in the monthly WASDE. Q2 was trimmed by 5m lbs to 6.64 billion, which left the full year output at 27.376 billion.
Pork cutout futures are mixed at midday with weakness for June and August, but a $1.77 gain in July. USDA’s National Pork Carcass Cutout Value was $2.71 higher to $88.39. USDA estimated the week’s FI hog slaughter at 2.363 million head through Saturday. That was 3k head lighter than the same week last year and left the YTD total at 56.115 million head.
Jun 23 Hogs closed at $87.875, up $0.200,
Jul 23 Hogs closed at $89.625, up $2.425
Jun 23 Pork Cutout closed at $88.750, up $0.050,
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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