Hog markets were lower today with another session of wide ranges. Although the high of the day was the opening price, the market bounced off of it’s lows to settle at 86.425 for the April contract. The CME lean hog index is up 7 cents to $72.71 (as of Jan. 27) extending its gains for the fourth straight day. Though the index is only up 61 cents during that stretch, it’s reflecting the steadiest gains since a five-day rally in late October. Pork cutout values dropped $1.03 on Monday to $80.28, with 272.27 loads on the day. China’s sow herd increased 0.6% in December from November to 43.9 million head, according to ag ministry data. Sow inventories increased 1.4% from the end of 2021. China’s pig herd expanded 1.9% in December from the previous month to 452.6 million head, a 0.7% increase over the previous year. Although the April hogs are holding a premium to the cash market, the futures are deeply oversold and in my opinion are developing the bottom.
April Hogs
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