Hogs Rallied with Tighter Pork Outlook

The hog futures market ended Tuesday with triple digit gains of 3.3%. The October contract finished at an $8.40 premium to Dec and a $5 premium to the Feb contract. The National Average Base Hog price fell 61 cents on Tuesday to $78.56. The 9/08 CME Lean Hog Index was back down by a dime to $86.17.

USDA cut estimated Q3 pork production 65m lbs and Q4 40m lbs lower for a 27.159b lb 2023 production. 2024 remained unchanged at 27.335 billion.

Pork cutout futures closed $0.47 higher in April but $2.05 stronger in the October contract. USDA reported the National Pork Carcass Cutout Value at $101.20, up by $1.75. USDA estimated the Tuesday FI hog slaughter at 477k head, for a week to date total of 945k head. That is down from 960k head during the same week last year.

Oct 23 Hogs  closed at $85.275, up $2.725,

Dec 23 Hogs  closed at $76.900, up $2.250

Oct 23 Pork Cutout  closed at $95.900, up $2.050,