Lean hog futures are getting a ‘buy the fact’ reaction following Thursday afternoon’s Hogs & Pigs report, with contracts up 35 cents to $1.75. The USDA National Base Hog price was reported at $87.46 on Friday morning, down $2.13 from the previous day. The CME Lean Hog Index was back down 17 cents at $89.75 on June 26.
USDA quarterly Hogs & Pigs data showed all hogs and pigs at 74.786 million head as of June 1, a 1.27% increase from a year ago and above estimates for a 0.8% increase. Hogs kept for marketing were up 1.68% to 68.479 million head, with hogs kept for breeding at 6.008 million head, a 3.19% drop. The March-May pig crop was at 34.021 million head, up 1.82% vs. last year, with pig per litter 1.76% higher to 11.56. Sows farrowing in that period were up 0.1% to 2.944 million head. Farrowing intentions for the June to August period at are 2.963 million, a 3.53% decline from a year ago.
USDA reported the Friday morning Pork Cutout Value up a sharp $4.93 to $99.83. All primals were reported higher, with the ham leading the charge, up $10.50. USDA estimated Thursday’s FI hog slaughter at 476,000 head, taking the WTD total to 1.886 million head. That is down 13,000 head from a week ago but 74,376 head higher than the same Thursday in 2023.
Jul 24 Hogs are at $89.800, up $0.350,
Aug 24 Hogs are at $89.850, up $1.750
Oct 24 Hogs is at $76.000, up $1.275,
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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