Hog Futures Lower on Increasing Domestic Pork Output

Hog futures are down for a third straight trading session on the outlook and concern increasing domestic pork output and supplies overshadowing pork demand here and overseas.  Hog futures are down today $3.00 per CWT from their high only yesterday.

USDA data reveals meat-packers slaughtering nearly 1.3M hogs earlier this week, which is 1.5% more animals than this exact time last year.  Government data also shows exporters shipping just over 3.25B pounds of pork this year (through August 31st), which is actually “down” a reported 8.6% from the same time last year – with carcass weights heavier for two months in a row.
           
Mason Ching, Automated Trading Manager at Global Futures Exchange & Trading Company in Encino, CA, had this to say regarding the current hog futures situation,Weaker cash hog markets due to large hog runs have carried over to the futures, in my opinion this is due to the weather system moving across the Midwest which has allowed farmers to catch up on any delayed hog movement.”

The trend for hog futures remains up with no top yet in sight.  I am still favoring the long-side of hog futures and see the market targeting the 94.50 to 94.75 area – in my work.

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