Pork Profit Maximizer – Food Service Edition
The nearby July hog futures contract declined almost 5% in the last four trading sessions. The decline has come even as the cash hog index continues to push higher. July futures closed on Friday under $80/cwt even as the cash hog index is currently above $86/cwt. The positive basis is a little unusual at this time of year although not unprecedented. Last year the one day cash hog index on June 22 was around $90.5/cwt even as the July contract on that day was trading at $86. Last year futures traded somewhat soft through the end of the month but then the contract expired at $92.4.