October hogs closed 45 points higher on the session Friday, and up 145 points for the week. Hogs were one of the only commodity markets to finish last week with a positive result, in contrast to the washout in grains, energy markets and a collapse in metals. The market traded mostly higher early Friday as a sharp jump in cash belly prices supported solid gains in the pork product market Thursday and in turn strengthen futures prices on Friday. This could suggest increased export demand to Asia. Cash hogs were steady to $1.00 lower at terminal locations, which some traders felt may have helped to limit the advance. A weaker tone for the cash market may have been offset by talk of a positive cold storage report late Thursday as well as ideas that the pork rally late last week might stabilize cash hogs prices early this week. The CME Lean Hog Index as of September 21st came in at 90.52, up 63 cents from the previous session and up from 86.93 the week before. The estimated hog slaughter came in at 419,000 head Friday and 178,000 head for Saturday. This brought the total for last week to 2.289 million head, up from 2.287 million head the previous week and up from 2.199 million head a year ago. Pork cutout values released after the close Friday came in at $97.84, up 33 cents from Thursday and up from $95.37 the previous week. This is the highest pork trade since August 30th.
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