October hogs closed 45 points higher on the session Friday and up 145 points for the week. The discount of futures to the cash plus talk that cash hogs traded steady to $1.00 higher on the day Friday helped support new buying and a move to the highest level since August 26th. The hog market saw a strong 3-day rally into Friday as futures recovered from a steep discount to the cash market. Weaker commodity and equity markets along with strength in the Dollar are seen as the main negative factors for hogs this morning. Pork cutout values released after the close Friday came in at $94.23, down 76 cents from Thursday and down from $95.35 the previous week. Loins were down $2.80 to $111.25 as compared with $115.95 one week ago. US exports of pork in July came in at 386.22 million pounds which was up 17.9% from last year. July exports represented 23.6% of the total production for the month. Year-to-date exports reached 2.837 billion pounds, up 15.6% from last year's pace. The CME Lean Hog Index as of September 7th came in at 87.65, down 1.49 from the previous session and down from 96.29 the week before. The estimated hog slaughter came in at 423,000 head Friday and 302,000 head for Saturday. This brought the total for last week to 2.004 million head, down from 2.129 million head the previous week but up from 1.924 million head a year ago. Pork production for the week was 398.4 million pounds which is down 5.7% from last week but up 2.8% from last year.
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