Lean Hog Rally Adds Triple Digits

The wide ranged trading in front month lean hog futures continued on Wednesday, though prices went home near the top of their day’s range. Gains were $1.17 to $2.05 for the remaining ’22 contracts, and limited to 80 cents in the deferred months. Lean hog futures are up another nickel to $1.60 as the nearby months continue to gain on the deferred contracts. USDA’s National Average Base Hog price for Wednesday afternoon was $7.19 higher to $127.69. The CME Lean Hog Index was up $1.02 cents on 7/18 to $115.91.  

Pork cutout futures also rallied triple digits on Wednesday, led by the $2.52 gain in August to $120.20 – the highest since May for the contract. USDA’s National Pork Carcass Cutout Value faded 75 cents in the PM report to $124.37. Federally inspected hog slaughter for the week through Wednesday was estimated at 1.368m head. That is up 22k head wk/wk but trails the 1.396m head pace from the same week last year. 

Aug 22 Hogs  closed at $114.875, up $2.050,

Oct 22 Hogs  closed at $96.025, up $1.525

Aug 22 Pork Cutout  closed at $120.200, up $2.525,