Hogs were mostly higher at the close on Monday with nearby contracts supported by much higher cash values. Monday’s trading marked the end of the July contract which finished at $92.40, while August takes over as the front month at more than $11 under both the July and the cash index. The hog index was 6 cents lower for Monday, and the weekend kill projects another $.28 weaker for Tuesday. The pork belly market was up more than $8 Monday morning and was $3.41 higher in the afternoon report, though the cutout value was lower on weakness in other products. Loads scheduled for this week were barely above last week, and indicate that this week’s kill is likely to be close to 2.2 million head.
The cash market is likely topping out, but the wide spread between the cash index and August is expected to keep the market in a broad range into later in the month. A top in the belly market is needed before a meaningful break in the cash market can develop.
