Hogs Drop Back Triple Digits

Turnaround Tuesday action pushed front month lean hog futures back by as much as $2. August futures closed a nickel lower to $53.07 ahead of Friday’s expiration. The CME Lean Hog index was $53.02 on Aug 8, up by 58 cents. USDA’s National Average Afternoon Base Hog price for Tuesday was $1.01 weaker to $37.42. Domestic pork prices in China for the month of July were 10.3% higher mo/mo, and 85.7% higher yr/yr. China announced plans to sell another 10k MT of pork from state reserves on August 14. YTD the PRC gov’t has already auctioned 420k MMT of pork. Tuesday afternoon’s National Pork Carcass Cutout value was up $0.32 to $70.39. Hams were quoted at $47.84 cwt. in the afternoon. USDA’s estimate for Tuesday’s FI hog slaughter is 458,000 head. After revising Monday lower, USDA has the WTD hog slaughter at 915,000 head. That is 36k head above the week prior, but down 16k yr/yr.

Oct 20 Hogs closed at $51.825, down $2.000,

Dec 20 Hogs closed at $53.300, down $1.400

Feb 21 Hogs closed at $60.600, down $1.150

--- provided by Brugler Marketing & Management

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