Hog Futures to Follow the Gain into Week’s End

Front month lean hogs headed higher into the weekend, with contracts up 25 cents to $1.52 on Friday. USDA’s National Average Base Hog fell back by another $2.51 on Friday afternoon to $117.08. The 5-day average was $126.40 and the WCB was $121.02. The 7/27CME Lean Hog Index was $120.58, up another 85 cents. 

Pork cutout futures were up $1.52 for the August contract. USDA’s National Pork Carcass Cutout Value for Friday’s PM report was down by $1.45 to $127.34. USDA estimated FI hog slaughter for the week through Saturday at 2.291m head. That is higher that the 2.285m from last week but down 22k from the same week last year. The YTD kill, at 71.18m head, is still 3.7% below last year’s pace. 

Spec traders in lean hog futures and options were adding 5,730 contracts to their net long position in the week ending on 7/26, taking it to 51,075 contracts. 

Aug 22 Hogs  closed at $120.650, up $1.525,

Oct 22 Hogs  closed at $97.225, up $0.900

Aug 22 Pork Cutout  closed at $126.075, up $1.525,