Hogs Pull back after Bumping into Resistance

Thursday’s hog rally was enough to have reclaimed 62% of the Sep 20 – Oct 20 drop. Futures faded the rally on Friday. Dec futures were still up a net $1.27 for the week. The Friday afternoon National Average Base Hog price was $1.31 lower to $67.18. The CME Lean Hog Index was $76.84 for 11/1, down by another dime. 

The weekly CoT report had managed money funds flipping back to net long in lean hogs as of 10/31. The group was net short for 1 Tuesday in the reporting system. Spec traders closed out 6.9k shorts during the week for a 1,689 contract net long. 

Pork cutout futures also faded on Friday with $0.82 to $1.42 losses across the front months. USDA’s National Pork Carcass Cutout Value dropped by 13 cents on Friday afternoon to $87.28. USDA reported the week’s pork production at 565.4m lbs. That is 2.8% higher for the week and was up 1.9% from the same week last year. Slaughter was shown as 2.677m head for the week, compared to 2.614m last week and 2.575m head during the same week last year. The YTD totals read 107.206m head harvested and 22.825b lbs of pork produced. 

Dec 23 Hogs  closed at $71.750, down $1.525,

Feb 24 Hogs  closed at $75.475, down $0.750

Dec 23 Pork Cutout  closed at $80.000, down $1.525,