Following the pattern established on Wednesday, the nearby hog market is extending the summer months’ premiums with gains for July and August. The deferred contracts are trading 45 to 87 cents lower so far. USDA’s National Average Base Hog price was 30 cents weaker on Thursday afternoon at $94.21. The 6/27 CME Lean Hog Index was $92.96, up by another 44 cents.
USDA’s Hogs & Pigs report released after market close on Thursday put the June 1 All hogs count at 72.394 million head, up by 0.11% yr/yr. The analyst estimates going in were to see a 0.7% reduction on average. There were 2.896m farrowing sows during March-May, down by 2.4% yr/yr. Farrowing intentions for June-August is 2.953m head.
Pork cutout futures are mostly lower at midday with some triple digit losses observed. The National Pork Carcass Cutout Value for Friday morning was $104.65, up by $1.75. USDA estimates the weekly hog slaughter at 1.812m head, down 29k head from last week and 27k head from the same week last year.
Jul 23 Hogs are at $95.625, up $0.175,
Aug 23 Hogs are at $92.250, down $0.075
Jul 23 Pork Cutout is at $99.600, down $1.200,
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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