An early morning break in the hog market found strong demand, that supported a rally into late in the day. June hogs broke nearly $.70 from the morning open and were $1.475 higher at the close. With May off the board, June becomes more commercially related, and the cash market continues to rally. The hog index was $1.31 higher at $71.94 and projected $1.07 higher for Wednesday. Packers were bidding for loads through Tuesday and negotiated trade was quoted $1.36 higher on strong volume. The pork market is now streaking higher and has gained nearly $10 since the start of the month, lead by the belly market which is up $26 for the month. Estimated packer margins for the week are near $13/cwt versus $7 last year and the 5 year average of $2.30.
The cash hog market is now up $13 in less than 4 weeks, while summer hog futures now look to be targeting contract highs. Tight belly stocks and price look to again be driving the entire market higher.
