Limit Losses for Hog Futures
October and Dec hogs closed down by their $3.75 limit on Friday after the bearish Hogs & Pigs report, and will see $5.50 trading limits on Monday. The other front months also closed triple digits lower in reaction to the Hogs and Pigs report on Thursday. December hogs were a net 40 cents weaker for the week and were down a net $2.55 through the month. USDA’s National Average Afternoon Base Hog price was $74.76 on Friday, down by $1.86. The CME Lean Hog Index stayed at $86.14 on 9/27 for no change.
China’s markets are closed through 10/9 for Golden Week. Dalian Live Hog Prices were 60 yuan higher to 16,610 yuan/MT (~$103.32 cwt.).
CFTC’s weekly CoT report had managed money firms closing longs in lean hogs during the week. In addition to net new selling, that left the group 8.5k contracts less net long at 32.5k contracts for 9/26.
Pork cutout futures settled 3% to 4.3% lower on Friday, and will also trade under expanded limits after the weekend. USDA’s National Pork Carcass Cutout Value was $97.23 on Friday afternoon, up by 31 cents on stronger picnic cuts. USDA estimated the week’s federally inspected hog slaughter at 2.604m head through Saturday. That is up 67k head for the week and is 119k head more than the same week last year. The yearly slaughter total remains 1.4% ahead of last year’s pace.
Oct 23 Hogs closed at $80.200, down $3.750,
Dec 23 Hogs closed at $71.775, down $3.750
Oct 23 Pork Cutout closed at $91.300, down $3.375,
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.
