October hogs traded lower with choppy trade early, but a rebound in corn prices supported strong gains later on in the session. Weakness in pork late last week and cash hogs trading steady to $2.00 lower early in the day were seen as negative factors early. However, a large discount of futures to the cash market may have been the key factor with an aggressive late rally in Friday's session. Cash news remains negative, and product prices remain in a steep downtrend. However, the CME Lean Hog Index as of August 30th was still 870 points premium to the October futures, which many traders feel may help to provide some underlying support. The index was 94.47, down $1.82 from the previous session and down from 101.76 the week before. The estimated hog slaughter came in at 414,000 head Friday and 50,000 head for Saturday. This brought the total for last week to 2.129 million head, up from 2.114 million head the previous week and up from 2.121 million head a year ago. Pork production for the week was unchanged from last year. Pork cutout values released after the close Friday came in at $94.60, down 75 cents from Thursday and down from $101.79 the previous week. It was the lowest the cutout has been since June 16th. Ribs are down to $122.73 from $143.40 last week.
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