June hogs closed 55 points higher on the session yesterday as a steady tone from the cash market was seen as a positive factor for the market after news of a further jump in average weights and the negative impact from outside market forces. As other commodity markets recovered and cattle rebounded to be moderately higher for the day, hogs saw a strong rally that took prices up to a 4-session peak. Higher weights and sluggish pork cut-out values are widely seen to be negative cash market fundamentals that are clashing with ideas of seasonal strength in the market. Pork cutout values released after the close yesterday came in at $78.16, down 71 cents from Tuesday and down from $78.45 the previous week. This is the lowest trade since May 3rd as hams and ribs were under pressure. Weekly average weights for Iowa-Southern Minnesota as of May 5th came in at 276.7 pounds, up from 276.1 pounds the previous week and up from 271.7 pounds last year. Last year's weights were higher than normal with the 5-year average weight near 269 pounds. Slaughter came in at 415,000 head which was fractionally above market expectations and widely considered to be somewhat positive after recent sluggish demand for live inventory. This brings the total for the week so far to 1.243 million head, up from 1.230 million head last week at this time and up from 1.182 million head a year ago. The CME Lean Hog Index as of May 7th came in at 79.97, down 29 cents from the previous session and down from 82.50 the week before.
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