The hog market continues to see strength from the stiff discount of futures to the cash market, but the cash trend looks down for now. August hogs pushed down to their lowest level since June 28th yesterday, as the surge higher in corn prices had traders nervous over the eventual movement of breeding stock onto the market. This could boost short-term supply in a period of weak consumer demand. Steady to $1.00 lower cash live hogs added to the selling pressure. Traders expect a boost in marketings this week now that the Midwest has cooled off, and producers could be anxious to move hogs ahead of more hot weather in the forecast for next week. The CME Lean Hog Index as of July 6th came in at 100.58, down 8 cents from the previous session and down from 102.11 the week before. This leaves August and especially October and December hogs at stiff discounts to the cash market. However, sluggish demand from the consumer and weak packer margins leaves the expected trend in the cash market down. The estimated hog slaughter came in at 395,000 head yesterday. This brings the total for the week so far to 788,000 head, down from 843,000 last week at this time and down from 799,000 a year ago. Pork cutout values, released after the close yesterday, came in at $89.59, down 28 cents from Monday and down from $93.85 the previous week. This was the lowest pork trade since June 13th. The estimated hog slaughter came in at 395,000 head, down from 423,000 last week and 416,000 a year ago. Total slaughter for the week so far has reached 788,000 head versus 843,000 for the same period last week and 799,000 a year ago. Last week's slaughter pace was accelerated because of the plant closings last Wednesday for the July 4th holiday.
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