Hog futures were sharply lower at Friday’s open and traded lower all day. October hogs again marked new contract lows, while December had light support just above last week’s low. The hog index was $.80 lower on Friday at $60.12 and projected $1.05 lower for Monday, putting the index under $60 for the first time since April.
The pork cutout was firm Friday morning, though the belly value continues to trade under $100. However, the carcass value continues to trade at more than a $13 premium to cash hog prices, giving packers an estimated margin near $31/head.
NASS will release the September inventory report next week, and quieter trading is expected in the last half of next week. A record large summer pig crop is expected, with increased intentions for fall farrowings.
