December hogs closed 25 points higher on the session Friday but down 17 points for the week. Weakness in cattle helped to spark some selling and pushed February hogs down into mid-session but the market recovered to post new highs for the day late in the day. Cash markets and terminal prices were steady on Friday but country prices traded lower. Some traders feel that a sharp break in pork cutout values on Thursday and Friday suggests further weakness for the cash market during this week. The CME Lean Hog Index as of November 2nd came in at 90.24, down 21 cents from the previous session and down from 92.83 the week before. Some traders indicated that the benchmark Iowa/Minnesota cash hog weighted average fell $1.50 on Friday to $85.95, which leaves December hogs roughly in line with the cash market. The estimated hog slaughter came in at 424,000 head Friday and 220,000 head for Saturday. This brought the total for last week to 2.347 million head, up from 2.306 million head the previous week and up from 2.342 million head a year ago. Pork production for the week was 481.5 million pounds, which was up 2.2% from the previous week but down 1.1% from last year. Pork cutout values released after the close Friday came in at $92.02, down $1.51 from Thursday and down from $97.00 the previous week. This is the lowest pork value since June 14th.
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