Lean hog futures declined on Friday, with contracts falling between 17 to 97 cents, although October futures closed 12 cents higher for the week. The USDA reported a national base hog price of $78.68, down 27 cents from the previous day, and the CME Lean Hog Index dipped 27 cents to $82.20 as of September 23. Managed money increased their record net short position in lean hog futures and options by 4,147 contracts, bringing the total to 35,548 contracts as of September 22.
According to the USDA’s Hogs & Pigs report, the September 1 inventory of all hogs decreased by 1.51% year-over-year to 74.302 million head, with market hogs down 1.55% to 68.427 million head. The June to August pig crop was also lower, dropping 1.53% to 34.5 million head. Additionally, the monthly Cold Storage report revealed pork stocks at the end of August reached 436.27 million pounds, showing a 12.03% increase from last year but a 0.81% decrease from the previous month.
Federal hog slaughter for the week was estimated at 2.552 million head, which is 68,000 head above the previous week and 19,124 head more than the same week last year. The USDA’s pork carcass cutout value increased by 64 cents to $86.74 in the latest report.
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