August hogs moved higher, and traded at the highest price levels since May 3rd yesterday. The limit-up trade in cattle, a continued downtrend in poultry "eggs set" and strength in the cash hog market were all thought to be supportive factors for the market, with the premium of futures to cash seen as a limiting factor for prices. Pork cutout values released after the close yesterday came in at $92.81, down $1.11 from Wednesday but up from $90.71 the previous week. Loins were down $4 but ribs were up $2.79 to $164.55 from $152.49 last week at this time. The CME Lean Hog Index as of June 14th came in at 91.62, up 21 cents from the previous session and down from 90.63 the week before. This leaves July hogs at a premium of nearly 400 points. Cash hogs traded $1.00-$2.00 higher yesterday and the market may have also found support from news of sharply higher trading in pork product prices late Wednesday, with higher trade for loins, ribs and cash bellies. The market also was strengthened by news of sharply lower hog weights this week, which will tend to hold pork production down at lower levels. Weekly average weights for Iowa-Southern Minnesota came in at 268.6 pounds, down from 270.6 the previous week and down from 271 pounds last year. The estimated hog slaughter came in at 403,000 head yesterday. This brings the total for the week so far to 1.603 million head, up from 1.602 million head last week at this time and up from 1.597 million head a year ago.
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