Hogs Closed Triple Digits Lower
Alan Brugler, Barchart
May 12, 2022
Front month lean hog futures were $0.82 to $3.70 in the red at the close. The National Average Base Hog price for Thursday was $106.36 after a $1.93 drop. CME’s Lean Hog Index for was 17 cents higher to $101.26.
USDA reduced their pork production estimate in the monthly WASDE by 36m lbs to 27.039 billion. Q2 and Q4 were each trimmed by 15m. Looking ahead to 2023, USDA expects Q1 pork production to be 6.995b lbs with their preliminary full year estimate for 27.365 billion.
USDA’s weekly Export Sales report showed 26,262 MT of pork was sold during the week that ended 5/5. That was up 10% wk/wk and was 78% above the same week last year. Pork export shipments were 33,116 MT during the week of 5/5, for a YTD total of 534,777 MT.
Pork cutout futures ended the day with $0.75 to $3.32 losses on the day. USDA’s National Pork Carcass Cutout Value was 89 cents weaker in the PM update to $98.60. FI hog slaughter for the week through Thursday is estimated as 1.894m head. That is down 28k head wk/kw and down 17k head from the same week last year.
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