Lean hog futures also rose sharply after the USDA reports, even as cash prices for hogs were mixed.
August hog futures, which expire Friday, rose 0.92 cent, or 0.9%, to $1.072 a pound in trading at the Chicago Mercantile Exchange. CME October hog futures rose 1.25 cents, or 1.4%, to 88.1 cents a pound.
Brokers continue to debate whether the wider-than-usual spread between August and October futures--which reflect a difference of about 19 cents a pound--mean that October contracts are over-sold after falling in recent days. The USDA report said supplies with tighten and demand will rise, even as many analysts say China will soon boost domestic production.
Cash hog prices were reported mixed but a majority of the processing plants were quoting lower prices. Only a few were paying steady or higher prices. Larger supplies of slaughter-ready hogs are expected to be available to processors next week and going forward into the late summer and fall.
The terminal markets traded mostly steady.
The USDA's pork carcass composite value, a measure of wholesale prices, on Wednesday rose 62 cents to $110.15 a hundred pounds following. A record high was hit Monday at $110.19 a hundred pounds.