Hogs Collapse After H&P Report
The first trade day after the weekend saw futures gap weaker at the close and continue fading through the session. The Feb contract closed near the low for the day. The National Average Base Hog price was withheld for confidentiality on Tuesday morning. The Friday PM quote was $47.76. The CME Lean Hog Index was $66.69 for 12/20, a 6 cent weaker quote.
The quarterly Hogs and Pigs data from NASS showed 74.971 million head for the herd as of Dec 1. That was even with last year and less than trade estimates for a 0.5% increase. Farrowing intentions were shown at Trader estimates for the Hogs and Pigs report due this afternoon range from a 1.2% drop to a 0.4% increase in the hog herd from Dec 1 to Dec 1. The average trade guess is to see a 0.5% lighter inventory of 74.475m head. Analysts estimate the Sep-Nov pig crop to be down 1.7% from last year.
The AM National Pork Carcass Cutout Value for Tuesday was $83.90, up by $1.69. USDA reported the week’s pork production at 524.4 million pounds. That is a 9.2% lighter volume from last week, though is 37% more than the same week last year. Slaughter was shown at 2.426 million head compared to 2.682m last week and the same time last year.
Feb 24 Hogs closed at $69.300, down $2.050,
Apr 24 Hogs closed at $76.075, down $1.500
Feb 24 Pork Cutout closed at $81.725, up $0.000,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
