Hogs Down Sharply on Economic Fears, Pork Firmer

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Source: Barchart

Hog futures are sharply lower this morning, taking direction from the stock market.  Equity futures are treating good news as bad news (seeing more Fed tightening) and anticipating a recession in 2023 that would nick meat demand.  For today at least, the hogs are buying into the story. The 12/02 CME Lean Hog Index was $82.79, down by another 8 cents.   The average negotiated cash hog price this morning is $82.133 on a carcass basis.

Pork cutout futures are as soft as the hogs, with February down $2.25 per cwt. USDA’s National Pork Carcass Cutout value (FOB Omaha) for Tuesday morning is $90.95, up $6.11 from yesterday. Pork bellies are showing a rebound, up $14.49 per hundred pounds.  The CME Fresh Bacon Index was $130.88 for the week that ended 12/2, that was down from $145.91 the week prior. USDA estimated Monday’s FI hog slaughter at 491k head. That is down 2,000 from last week but compares to 455k head from the same week last year.

 

Dec 22 Hogs  are at $82.625, up $0.550,
Feb 23 Hogs  are at $87.375, down $3.150
Dec 22 Pork Cutout  is at $89.250, down $0.350,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.