Hogs Lose Momentum, Push Downside
The late week momentum last week was lost with two triple digit loss sessions to start this week. At the close on Tuesday, the front month contracts were 20c to $1.05 in the red. December futures are now at a $10 discount to the soon-to-expire Oct and a $4.27 discount to Feb. The National Average Base Hog price dropped another 85c on Tuesday, to $73.96 in the PM update. The CME Lean Hog Index was shown at $82.46 on 10/06, another 57c weaker.
Pork cutout futures ended Tuesday down by 80c to 97c past the October contract’s 32c gain. USDA’s National Pork Carcass Cutout Value fell another $1.99 to $93.07 on Tuesday afternoon. Bellies were down by $19.31 cwt. dragging the carcass down on otherwise steady to stronger primal values. USDA’s estimate for Tuesday’s FI hog slaughter was 486k head. That has the weekly total at 972k head, -1k for the week and -7k from the same week last year.
Oct 23 Hogs closed at $81.950, down $0.025,
Dec 23 Hogs closed at $71.425, down $1.050
Oct 23 Pork Cutout closed at $93.625, up $0.325,
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.
