Lean hog futures bulls work to stabilize prices
Livestock analyst Jim Wyckoff reports on global pig news
4 August 2024
2 minute read
By: October lean hog futures have seen a price uptrend on the daily bar chart negated recently, but the bulls this week have worked to stabilize prices, at least for the moment. Bears still have the overall near-term technical advantage. The latest CME lean hog index is up another 49 cents to $93.08 as of July 30, the 13th straight daily gain. During that span, the cash index has risen $4.70. August lean hog futures continue to trade below the cash index as traders anticipate a peak in the cash market sooner than later.
Latest USDA and other news regarding the global pork industry
Weekly USDA US pork export sales
Pork: Net sales of 31,500 MT for 2024 were up 5 percent from the previous week, but down 10 percent from the prior 4-week average. Increases were primarily for Mexico (12,800 MT, including decreases of 400 MT), Colombia (4,100 MT, including decreases of 400 MT), Canada (3,700 MT, including decreases of 800 MT), South Korea (2,600 MT, including decreases of 300 MT), and Japan (2,600 MT, including decreases of 200 MT). Exports of 30,100 MT were down 8 percent from the previous week and 5 percent from the prior 4-week average. The destinations were primarily to Mexico (13,500 MT), Japan (3,900 MT), China (3,200 MT), South Korea (1,800 MT), and Colombia (1,800 MT).
USDA extends comment period on livestock competition rule
USDA's Agricultural Marketing Service (AMS) has extended the comment period for its proposed rule on Fair and Competitive Livestock and Poultry Markets by 15 days, moving the deadline to Sept. 11. Previously, comments were due by Aug. 27. The rule aims to define unfair practices as those that harm market participants and the market. The agency will publish a Federal Register notice to announce the extension.
China’s hog slaughter eases slightly in first half
China slaughtered 160.35 million head of hogs in the first half of the year, down 0.7% from the same period last year. China’s sow herd stood at 40.38 million head at the end of June, down 6.0% from last year.
The next week’s likely high-low price trading ranges:
October lean hog futures--$73.00 to 79.00 and with a sideways bias
September soybean meal futures--$320.00 to $340.00, and with a sideways bias
December corn futures--$3.85 to $4.15 and a sideways bias
Latest analytical daily charts lean hog, soybean meal and corn futures
