Lean Hogs Still Fighting Processing Backlog

Turnaround Tuesday action saw front month lean hog futures lower 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. China’s CPI inflation index was up 2.7% in July mo/mo, led mostly by food prices. 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. China has already auctioned 420k MMT of pork this year in an attempt to hold down prices. Tuesday afternoon’s National Pork Carcass Cutout value was up $0.32 to $70.39. 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.

--- provided by Brugler Marketing & Management

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