Thursday hog trading saw the August contract 35 cents lower as the other nearbys rallied as much as $1.75. October was the leader on the way up, and tightened the spread to August to $23.05. December is still another $8.97 below Oct. The USDA’s National Average Base Hog price was another $3.45 weaker to $127.19 on Thursday. The 8/2 CME Lean Hog Index was down by another 63 cents to $120.94, converging nicely with the futures.
FAS data had 31,035 MT of pork sales for the week that ended 7/28. That was a 4-week high, but still below the 38.8k MT sold during the same week last year. China, with 16.8k MT, and Mexico, with 8.6k MT, were the week’s top buyers. The weekly report also mentioned 26,047 MT of pork shipments for the week ending July 28. That brought the accumulated total to 873,997 MT. That remains 21% behind last year’s pace and 21% behind the 2020 record pace, but is still on track for the 3rd most through the first 30 weeks of the year.
Pork cutout futures also went home with triple digit gains in the front months beyond August. August itself ended with a 27 cent loss. USDA’s National Pork Carcass Cutout Value was $124.80 on Thursday afternoon, down by 69 cents. The USDA estimated FI hog slaughter at 1.819m head for the week through Thursday. That trails last week by 26k head and the same week last year by 3,000.
Aug 22 Hogs closed at $120.650, down $0.350,
Oct 22 Hogs closed at $97.600, up $1.750
Aug 22 Pork Cutout closed at $126.200, down $0.275,
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