Supply is on the Rise

Lean hog futures were mixed on Friday, with Dec and Feb showing gains of as much as 57 cents, while the back months posted losses of 22 to 42 cents. The futures finished $1.97 1/2 in the red through weekly action. The net long position held by managed money decreased to a net position of 6,007 contracts. The USDA Cold Storage data was released; showing frozen pork at an all-time October record of 614.508 million lbs. that’s a which was a 7.64% increase over last year, and 35.17% above the 10 year average for the month. Pork belly supply was 45.920 million lbs reported in storage, highest for October since 1988. The CME Lean Hog Index fell back 4 cents and was at $59.54 for 11/20. The USDA pork carcass cutout value gained $1.60 and goes into the weekend listed at $83.07. Primal cuts finished mostly higher with belly down by $1.77. USDA’s national average base hog price for 11/22 was 66 cents lower to $41.91. USDA estimated FI daily hog slaughter is 2.758 million head, which brings the yearly total up to 115.531 million head.

Dec 19 Hogs closed at $61.225, up $0.575,

Feb 20 Hogs closed at $67.650, up $0.200

Apr 20 Hogs closed at $73.700, down $0.400

--provided by Brugler Marketing & Management

Market Commentary provided by:

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