The market has seen an impressive run higher in recent weeks but could see overhead resistance as pork values have reached a level which might show significant consumer resistance. However, the cash market remains very strong and without a little better supply, packer demand could stay strong. Iowa/Minnesota cash (a volatile indicator) closed $2.69 higher yesterday to $102.52. July hogs were pushed sharply higher again yesterday as futures work just to stay up with the cash market. The rally pushed the market to the highest level since mid-March. Another surge higher in pork cut-out values on Friday, higher cash hog trade yesterday and fears that hog weights could drop in a period of high temperatures ahead helped to support. In addition, heat could limit marketings even further. Pork cutout values, released after the close yesterday, came in at $94.33, up 21 cents from Friday and up from $87.39 the previous week. This is the highest pork market since November 2nd, 2011. Slaughter came in a little higher than expected at 391,000 head. The CME Lean Hog Index as of June 14th came in at 94.21, up 1.08 from the previous session and up from 89.12 the week before. The estimated hog slaughter came in at 391,000 head yesterday. This was up from 386,000 last week but down from 394,000 a year ago as this time.
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