Lean Hogs Market Still Strong in Spot Month

Lean hog futures ended the Friday session with 2 to 35 cent gains, and 20 to 35 cent losses. The CME Lean Hog Index was $76.74 on 9/30, up another 20 cents and a $1.24 premium to Oct futures with a little over a week left until expiration. USDA’s National Average Base Hog price was down $0.89 in the PM report @ $63.52. Lean hog spec traders were 2,773 contracts less net long on 9/29 than the previous Tuesday. The long liquidation left managed money at 40,807 contracts net long. USDA’s National Pork Carcass Cutout value fell $3.50 cwt. to $92.15, on weakness in hams. The primal cuts were mixed, mostly higher, but hams fell $15 cwt. to $78.34. USDA estimated the week’s FI hog slaughter at 2.603 million head through Saturday. That was down 57,000 from the same week last year. YTD slaughter still outpaces 2019 by 1%. It had been running 3-4% above LY before the COVID-19 shutdowns and liquidations.

--- provided by Brugler Marketing & Management

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