October hogs traded sharply lower on the session early yesterday, and remained down near the lows despite a strong recovery in the cattle. The hog market closed sharply lower as many traders see cash news remaining weak over the next few sessions unless product prices can stabilize. The CME Lean Hog Index as of September 1st came in at 92.60, down 1.87 from the previous session and down from 100.74 the week before. This leaves October futures at a stiff discount to the cash market. Pork cutout values released after the close yesterday came in at $93.83, down 77 cents from Friday and down from $100.63 the previous week. This is the lowest pork product market since June 16th. Cash markets are expected to trade steady to $2.00 lower today, and some traders do not see a floor for pork product values yet so the cash prices could remain under pressure. The estimated hog slaughter came in at 428,000 head yesterday. This brings the total for the week so far to 430,000 head, down from 835,000 head last week at this time but up from 427,000 head a year ago. Many traders expect active slaughter levels this week along with a big kill on Saturday.
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