Positioning into the 4th of July weekend left the lean hog board mixed. Nearby futures added 47 to 87 cents and extended their premium. The other ’22 months closed 10 to 25 cents higher, as the deferred ’23 contracts ended red. USDA’s National Average Base Hog price for Friday was $4.69 lower to $114.22. The 6/29 CME Lean Hog Index was down another 42 cents to $10.84.
The weekly Commitment of Traders report showed managed money firms were 1,825 contracts more net long in lean hog futures and options through the week that ended 6/28. The short covering left the group 30,639 contracts net long.
China’s Farm Ministry reported the sow herd has dropped to 8% below last year’s May count. The preliminary estimate had shown a 5% drop. Margins have been negative for a while. The overall breeding herd is 41.9m head.
Pork cutout futures closed with $0.17 to $1.25 gains in the front months. USDA’s National Pork Carcass Cutout Value was $108.75 in the Friday afternoon update, up by $1.50. USDA estimated the week’s federally inspected hog slaughter at 2.286m head through Saturday. That compares to 2.304m head last week and 2.272m head during the same week last year. Despite this, YTD still trails last year by 2.7m head (4.2%) with 62.372m head processed.
Jul 22 Hogs closed at $109.600, up $0.475,
Aug 22 Hogs closed at $102.975, up $0.875
Jul 22 Pork Cutout closed at $110.575, up $0.175,
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