Hog futures were under pressure right from the open on Tuesday, and steadily traded lower all day. At the close December and February contracts were off more than $2 each, while the rest of the market was down more than $1. The hog index was down $.47 at $67 and projected another $.32 lower for Wednesday.
The latest update on hog producer returns from IA State University show improved profits in the farrow to wean business, and smaller losses in wean to finish operations during the month of October. Weaned pig producer margins were estimated at $5.39/head, the best since March and nearly $13/head more than a year ago when producers lost more than $7/head. In the finishing industry, margins were still negative at a $10.95/head loss, but up from a $30 loss in September and a negative $43/head return last year.
Major moving averages in February hogs are resting between $66-67, where initial support is expected to be uncovered.