Limit Losses for Lean Hogs

Friday hog trading had the board down triple digits, while the afternoon portion pushed futures to the limit ($4.75) loss. The expanded limit for lean hogs will be $7 on Monday. Despite the limit loss, April hogs were only down by $3.22 from Friday to Friday. The National Average Base hog price for Friday afternoon was $3.01 higher to $97.41. The CME Lean Hog Index was up 6 cents on 3/2 to $99.70.  

The weekly CoT report showed lean hog spec traders were 2,455 contracts less net long as of 3/1. That came as long liquidation outnumbered the spec short covering through the week, and left the group 74,506 contracts net long. 

USDA’s Ag Attache confirmed that China’s Ministry of Ag Rural Affairs reported a case of ASF having affected 16 hogs in Xinjiang’s Uygur Autonomous Region. Sixteen of the hogs were killed, though the report did not specify if they were the same 16 found sick. All 150 head in the vicinity were culled and disposed of. 

Pork cutout futures went home on Friday down by $4.30 to $5.65. With the limit drop in lean hogs, they will also utilize their $8.50 expanded limits on Monday. USDA’s National Pork Carcass Cutout Value for Friday afternoon was $2.42 weaker to $103.99. USDA estimated FI hog slaughter for the week through Saturday at 2.427m head. That is 69k head under last week’s kill and trails the same week last year by 130k head. 

Apr 22 Hogs  closed at $100.450, down $4.750,

May 22 Hogs  closed at $105.750, down $4.750

Apr 22 Pork Cutout  closed at $106.600, down $4.700,