Hogs Gaining Triple Digits So Far

Midday hog futures are up $1.85 to $3 so far. October contracts are leading the way, though triple digit gains extend past June ’22 contracts. USDA’s National Average Base hog price fell $1.91 on Thursday morning to $81.61. The CME Lean Hog Index for 9/13 was 63 cents weaker to $96.77.        

USDA’s Export Sales data showed 25,347 MT of pork was booked during the week that ended 9/9. That was a 3-week low and 16% below the same week last year. China only purchased 1,840 MT (12%) of the total, as the PRC now has 24,011 MT on the books. That is down 75% from their outstanding sales at this point in 2020. Pork export commitments to all destinations are down 7% yr/yr. 

Chinese officials announced intentions to purchase more pork in state reserves. This second round purchase program is intended to help boost pork and hog prices to encourage herd rebuilding. Reports on the wire state farmers are liquidating less productive sows as high feed prices keep margins tight. 

Pork cutout futures are up $0.70 to $2.45 so far at midday. USDA’s National Pork Carcass Cutout Value was $108.17 in the AM report, up by $2.47. USDA’s estimate for FI hog slaughter this week through Wednesday is 1.433m head. That compares to 1.454m head during the same week last year.  

Oct 21 Hogs  are at $85.275, up $3.000,

Feb 22 Hogs  are at $77.350, up $1.975

Oct 21 Pork Cutout  is at $100.925, up $2.425,