Lean hogs firmed up some on Friday, closing up by 2 to 42 cents. The October missed out, and sold off around 11 central to close the day down by 65 cents. For the week, Oct was at a net $2.30 loss while Dec ended $2.47 weaker Friday to Friday. USDA’s National Average Base Hog price for Friday afternoon weakened by $3.03 to $84.62. CME’s 8/23 Lean Hog Index was shown at $96.40, down by another 97 cents. ell another 67 cents on 8/22 to $97.37.
CFTC reported managed money traders were reducing exposure in hogs during the week that ended 8/22. The group closed more longs than shorts, reducing their net long by 1.5k contracts to 21.4k.
Pork cutout futures followed suit with a 92 cent loss for October and 15 to 42 cent gains for the other deferred contracts. Dec was at a net 22 cent loss for the week. USDA’s National Pork Carcass Cutout Value fell by $11.50 on Friday afternoon as bellies dropped an entire $58.48! That had the cutout at $93.42 into the last weekend ahead of the Labor Day Holiday. USDA estimates FI hog slaughter at 2.5m head for the week through Saturday. That is up from 2.414m head during last week and 2.412m head for the same week last year. USDA had the YTD estimate at 81.775m head – compared to 80.673m head during the same week last year.
Oct 23 Hogs closed at $79.825, down $0.650,
Dec 23 Hogs closed at $72.025, up $0.125
Oct 23 Pork Cutout closed at $91.100, down $0.925,
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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