US pig outlook; lean hog futures showing signs of a market bottom

US hog supplies are tightening and wholesale pork and cash hog prices have trended higher lately, even though the rate of gain hasn’t been great. The latest CME cash hog index quote is $75.62. Look for hog and pork prices to advance in the coming days and weeks ahead. Having last week’s kill fall below the comparable year-ago figure for the first time this year was a big step in that direction. It will help the bulls if forthcoming slaughter rates match the implicit USDA forecast of supplies consistently falling 2% below year-ago levels. Pork cutout has also risen about $5.40 from the Jan. 17 low of $77.44. While consumer and grocer demand for most cuts may not prove strong with Lent looming, industry demand for hams to be featured for Easter dinner should provide solid support. Demand for the other cuts should surge as Easter (on April 9), and the unofficial start of grilling season, nears. USDA Thursday reported US pork net sales of 45,000 MT for 2023 were up 56 percent from the ...