Cash Hog Fundamentals Continue to Weaken

The national direct cash hog price fell $2.02 on Wednesday, with much of the pressure in the Iowa/Minnesota market, which was down $3.73. The CME lean hog index is down another $1.74 (as of Aug. 30) to $107.62 – the lowest level since June 10. With packer margins solidly in the red, additional cash weakness is expected as slaughter supplies build seasonally into the end of the year.