It was a good start and disappointing finish for the hog market at midweek. July was higher at the open, but after briefly trading new contract highs, turned back down and finished just above unchanged. December briefly cleared last week’s high and was lower at the close.
The hog index gained $.57 to $81.16 and projected another $.93 higher for Thursday. Packers were still bidding for loads at midweek, with the USDA reporting negotiated trade up $2.17 on moderate volume. Slaughter margins continue to hold at multi year highs and are well over average, which is keeping a bid in the hog market as supplies seasonally narrow. The belly market is back on the move and now up nearly $60 in just 7 weeks. The cutout has increased more than $20 in the same time period, with more than half of the increase coming from the higher belly value. The cash market continues to gain, and once again a top will likely be timed with a high in pork bellies.
