As the week drew to a close, the thinner May and July hog contracts soared to new LoC highs, with April not far behind, showing a modest rise of $2.55 compared to the preceding week, albeit still trailing by approximately $2 from the peak of the uptrend. The futures market painted a bullish picture as the last trading day wrapped up, securing robust triple-digit gains ranging from $1 to $1.90. USDA’s National Average Base Hog price closed the day at $79.94, marking a notable 24-cent increase on Friday. Meanwhile, the CME Lean Hog Index also exhibited strength, finishing 17 cents higher on 3/13 at $82.19.
Examining the weekly Commitment of Traders report revealed that lean hog speculators maintained a 63,679 contract net long position as of 3/12. This marked a slight decrease of 1.54k contracts in the net long position during the week, with a reduction in long positions compensating for exiting shorts, showcasing a rebalancing of market sentiment.
The USDA’s National Pork Carcass Cutout Value followed the upward trajectory, registering a 22-cent uptick on Friday to reach $93.47. This increase was predominantly bolstered by butt prices surging by $4.11. The pork production for the week stood at 533 million pounds, reflecting a 2.7-million-pound uptick from the previous week but witnessing a 1.6% decline compared to the corresponding period last year. Hog slaughter figures also showed a slight increase, with 2.47 million heads processed during the week, a 0.6% rise from the prior week but 1% lower than the equivalent week in the previous year.
Apr 24 Hogs concluded at $86.925, marking a healthy $1.900 gain,
May 24 Hogs wrapped the week at $93.175, up by $1.575
Apr 24 Pork Cutout finished at $93.150, rising by $0.550,
Alan Brugler did not have any positions in the mentioned securities at the time of publication. The information presented is purely for informational purposes.
The opinions and views expressed in this article belong to the author and may not necessarily align with those of Nasdaq, Inc.
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