Hog futures were firm at the open and higher in early trade, however early gains were lost following the release of the morning pork report that showed the pork cutout down $2.12 with cash bellies dropping $15.54. October hogs caught late day support under the 50 day moving average and staged a minor late day recovery, but were still down $1.75 at the close. The hog index was down $.40 at $84.38 and projected $.35 lower for Thursday. The afternoon pork report showed the belly value down $13.59, however the ham value was $1.10 lower from the morning report, and the carcass value was down $2.12 for the day at $91.73.
Hog slaughter at midweek totaled 1.338 million or 72,00 head more than a week ago. There are now 102,608 head now scheduled for the Saturday kill, with more loads expected to be added by week’s end.
Estimated slaughter margins have narrowed for 6 consecutive weeks, and at midweek are now the lowest since late March. Increasing supplies increasing and narrowing margins look to keep cash prices under pressure and stop rallies at the CME.
