Lean hog futures also rose Monday during the broad rally in stocks and commodities.
October hog futures rose 0.62 cent, or 0.7%, to 89 cents a pound in trading at the CME. CME December hog futures rose 0.27 cent, or 0.3%, to 85.15 cents a pound.
October contracts continue to pose a dilemma for investors since they trade at a roughly 17-cent discount to cash prices. Futures converge with cash as a contract nears expiration--for October, about seven weeks away. Despite their deep discount, October contracts still trade more than 10 cents above their highest-ever expiration price.
Cash prices were essentially unchanged Monday as cash markets were mostly quiet, since processors generally have enough hogs booked for the first half of this week.
Once trading gets under way, dealers expecting prices at steady or 50 cents to $1 lower. Packers continue to enjoy positive margins, which give them more incentive to increase output. There was notable talk Monday that packers will slaughter more than 50,000 hogs on Saturday, the first substantial weekend slaughter in some weeks, although packers can typically cancel such weekend schedules on Wednesday or Thursday.
The pork carcass composite value from the USDA on Friday rose 73 cents to $107.66 a hundred pounds.
The latest Dow Jones Newswires pork packer margin index was plus $11.88 per head, compared with plus $12.72 as calculated Friday.
The latest CME two-day lean hog index for Thursday was down 0.93 cent to $1.0509 a pound. The index has fallen 2.6% since hitting a record high of $1.0784 on Aug. 11.