Hogs Lower Despite Export Sales Surprise

Lean Hog futures lost 17 1/2 to 35 cents in the front months, pushing Dec futures to $1.65 lower on the week. USDA reported 210,853 MT of pork export sales for the week ending 10/10, just shy of July 31st 2014’s record. Mexico was the biggest purchaser, with a 63% share (132,888 MT) of new sales for the week ending 10/10. The report also indicated that due to the 689% wk/wk increase, our accumulated export sales are already ahead of 2018’s yearly total, with 11 weeks left to add to this record marketing year accumulated total. USDA indicated this report included some delayed reporting. USDA estimated hog slaughter for the week ending 10/19 is at 2.726 million head, up 16,000 head from last week and 167,000 larger than the same week’s total from last year. The Year to date hog slaughter is 101.952 million head, outpacing last year’s slaughter by 3.61%. The CME Lean Hog Index was at $64.90 on Oct 16. The USDA pork carcass cutout value closed higher on Friday by $0.75 finishing the week at $77.03. The national average base hog value goes into the weekend down by $0.94 at $56.86. A trade team wrapped up discussions in Vietnam this afternoon, with official results for Monday. Ted Mckinney stated the Vietnamese hog herd is down by 20% (due to ASF).

DEC 19 Hogs closed at $67.950, down $0.200,

FEB 19 Hogs closed at $77.475, down $0.175

APR 20 Hogs closed at $83.450, down $0.350

-- provided by Brugler Marketing & Management

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