Hog Futures Reduce Spreads

Lean hog futures closed mixed after Monday adjustments pulled some of the nearby premium off the table. Last week August and October were the stronger gainers, though Monday’s triple digit losses there to triple digit gains in the deferred months limit the Aug premium to $24.17 over April. USDA’s National Average Base Hog for Monday afternoon was $1.29 weaker to $117.19. The CME Lean Hog Index was another $1.04 higher to $118.22 for 7/21. 

Pork cutout futures went home with $0.32 to $1.67 losses nearby, though the Feb ’23 contract closed with a 50 cent gain. USDA’s National Pork Carcass Cutout Value was $1.85 on Monday afternoon after a $1.85 bounce. FI hog slaughter was estimated at 450k head for Monday, up 1,000 wk/wk but down 17k head from the same Monday last year. 

Aug 22 Hogs  closed at $117.225, down $1.475,

Oct 22 Hogs  closed at $94.125, down $2.200

Aug 22 Pork Cutout  closed at $123.425, down $1.100,