Lean Hogs Close Red on Wednesday

Front month lean hog futures were down by $0.10 to $2.22 at the close. The August contract was down the most for the day, but was still 40c off its session low. Lean hog futures are 15 cents higher in October, but 5 to 45 cents weaker in the other nearby futures. USDA reported the National Average Base Hog price 37 cents stronger on Wednesday to $100.76. The CME Lean Hog Index increased another 51 cents to $98.66 on 7/10. 

USDA estimated Q2 and Q3 pork production lower by 35m lbs each relative to June, but they raised Q4 by 65. That left the full year output at 27.371 billion lbs for 2023. Their 2024 outlook cut Q1 by 35m lbs from June for a 15m lb lighter yearly total of 27.335 billion. 

Pork cutout futures closed higher in the July contract, but $0.47 to $1.47 weaker in the deferred months. The Pork Carcass Cutout Value was quoted $1.33 lower in the PM report at $110.66. USDA estimates federally inspected hog slaughter at 1.388m head for the week through Wednesday. That is 46,000 head ahead of the same week last year’s pace. 

Jul 23 Hogs  closed at $101.175, down $0.100,

Aug 23 Hogs  closed at $95.350, down $2.225

Jul 23 Pork Cutout  closed at $110.700, up $2.925,