Lean Hog Futures Recovering

Lean hog futures see triple digit rallies for this turnaround Tuesday. The CME Lean Hog Index regained $0.10 yesterday, to $60.29. The pork carcass cutout value up is another $2.73 so far at $89.07; the biggest gainers were hams and picnic shoulders, with ribs down by 69 cents so far at midday. The national average base hog price is 12 cents lower to $42.47. The USDA estimated FI hog slaughter for Monday’s holiday is 444,000 head; the weekly total from last week reached 2.693 million head. Since the National Day festivities, domestic pork prices in China have knowingly skyrocketed, as the shortage has spread to the government reserves of frozen imported pork. Chinese officials are reportedly planning new policies to maintain price levels, one of which is to import American poultry as a substitute to expensive pork, and the other is to mandate private storage firms to release their supplies; watch for the new policies to take effect before the Chinese lunar new year in January.

DEC 19 Hogs are at $65.475, up $2.175,

FEB 19 Hogs are at $75.725, up $2.000

APR 20 Hogs are at $81.900, up $1.250

--provided by Brugler Marketing & Management

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