Lean Hogs Fight to Keep Cash Above $30

Front month lean hog futures closed the day with 35 to 82 cent losses in the front months. July contracts traded higher on the day, with a 12 cent move to $45.97. The 2 day lagged CME Lean Hog index for July 8 was down 17 cents to $45.18, a positive basis of $1.13 from the July 8th and an approximate basis of minus 80 cents from today’s close. In their weekly update, CFTC reported lean hog spec traders at 6,635 contracts net long. The net new buying interest increased the net long 1,937 contracts wk/wk. The National Average Afternoon Base Hog price was $0.09 lower to $29.99. In the monthly WASDE updates, USDA estimates 2020 pork production at 28.536b lbs. That is up 770m from June’s 27.766 billion lbs. 3Q was 310 million above the June estimate and 4Q was increased 325 million lbs to 7.485 billion. USDA’s National Pork Carcass Cutout Value was up $1.83 to $68.36. Ribs and bellies were lower, but the other primal cuts were higher. USDA estimated the week’s hog slaughter at 2.606m head through Saturday. That is 187k head above the same week last year, and pushed YTD slaughter to within 10k head of last year’s pace.

--- provided by Brugler Marketing & Management

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