A steady start to the morning found selling in August, while a rally in December was stopped at midday, with price pulled back near unchanged at the close. The hog index was down 6 cents at $92.40, and projected 39 cents lower for Friday which puts the index $.83 lower for the week. Negotiated trade was also $.51 lower on moderate volume.
The July Livestock slaughter report showed total June pork production at 2.053 Bil Lbs, 102% of a year ago, and a record production total for the month of June. The monthly average barrow/gilt carcass weight was at 208 Lbs versus 211 Lbs a year ago. The weekly Actual Slaughter report with date for the week of July 8th, showed a 2 lb bounce in weights to 208 lbs due to the July holiday. However weights remain under a year ago.
August hogs have held an approximate range of $80-85 in the last 3 weeks, and broad ranging trade is expected to continue into expiration. Our longer term view remains bearish on rallies.
