MURICO.com Forum

The CME Lean Hog Index component on the kill for -

9/9/19 kill was down -1.13 to 62.27. The VVVs are n.ow trading premium to the component by +0.68. The VVVs have really been all over the place today. Well, for that matter most hog futures have been very volatile today.

The six-day moving average carcass weight firmed to 211.09#. That is +1.89# yr/yr. Index hogs were steady at 210.63#. Packer hogs are -1.23# lighter than the non-packer hogs. Packers have really moved a lot of their hogs to market in the last couple of months.

Pork prices in China are moving higher. Pork is being moved out of their strategic reserves and some actions are being taken by the authorities in an attempt to limit the price of pork moving too high too fast. The fact remains that China has lost a lot of hogs including a lot of breeding hogs. The level of tariffs being imposed on American pork makes it near impossible to export to China. Another leaf was peeled off the cabbage today as we search for the seasonality low that is hidden in the cabbage heart but we really didn't learn much about what that low is going to be. Historically there is a strong tendency for the low to arrive about the time the ZZZs go to cash settlement.

Best wishes,

Doc