August Hogs Rally Into Weekend

Lean hog futures closed mixed with a 7 cent loss in the May ’23 contract to 10 to 55 cent gains in the other nearbys. The lead month August contract was the exception, closing the day with a $2.40 gain to levels not seen since April. August holds a $22.37 premium to October, which itself is $9.80 above Dec. USDA’s National Average Base Hog price for Friday was down by $6.23 to $118.48. The CME Lean Hog Index was 67 cents stronger on 7/20 to $117.04.  

CFTC’s weekly Commitment of Traders data had managed money at 45,345 contracts net long on 7/19. That was 5,411 contracts stronger via net new buying. 

Pork cutout futures went into the weekend mostly higher as well. August closed $2.40 stronger, with 5 to 40 cent gains in the other nearbys. USDA’s National Pork Carcass Cutout Value was $125.74 in the Friday PM report. That was up by $1.84. Federally inspected hog slaughter was estimated at 2.285m head for the week through Saturday. That compares to 2.255m head last week and 2.325m head during the same week last year. 

Aug 22 Hogs  closed at $118.700, up $2.400,

Oct 22 Hogs  closed at $96.325, up $0.550

Aug 22 Pork Cutout  closed at $124.750, up $2.625,