It was another back and forth day of trade in the hog market, that left prices lightly mixed but little changed at the close. October and December were both slightly weaker, while 2018 hog prices gained slightly. The hog index was down $.14 at $85.62 and projected $.13 lower for Friday.
The August WASDE report did not offer any significant changes for pork supply or demand in 2017. 3rd quarter production was fractionally reduced on lighter than expected slaughter rates, and very slight changes were made to the import and export figures. The 3rd quarter price forecast was also adjusted up to reflect strong July and early August prices. The forecasts for 4th quarter 2017 and 1st quarter 2018 pork production were unchanged, and held at a record large 7,000 Mil Lbs for the 4th quarter and 6,535 Mil Lbs in the 1st. No changes to production forecasts will be made until after the September inventory report, and our view remains bearish on rallies.
