Lean hogs built in more nearby premium as the board rallied through the Dec contract on Tuesday. August was up the most on the day with a 62 cent gain to December’s 2 cents. The ’23 contracts faded by 12 to 32 cents through April. USDA’s National Average Afternoon Base Hog price was up by $5.19 to $122.44. The CME Lean Hog Index for 7/8 was $111.77 after another 80 cents.
The July WASDE had 2022 pork production 60m lbs lighter at 27.159 billion. That was mainly to Q3 with a 30m lb trim, though both Q2 and Q4 were cut by 15. For 2023, USDA has the production forecast at 27.52b lbs, and raised Q1 by 5 million to 7b flat.
Pork cutout futures ended with triple digit gains in July and August. The other nearby futures went home with 25 to 42 cent gains. USDA’s National Pork Carcass Cutout Value was cited at $117.47 on Tuesday afternoon after another $2.40 bounce. USDA estimated Tuesday’s FI hog slaughter as 460,0000 head. That set the week’s total as 899,000 head after revising Monday lower. The same week last year had 922k head slaughtered through Tuesday.
Jul 22 Hogs closed at $113.600, up $0.450,
Aug 22 Hogs closed at $109.000, up $0.625
Jul 22 Pork Cutout closed at $114.800, up $1.500,
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