Lean Hog Futures See Gains Amid Market Fluctuations

Key Financial Metrics: Lean hog futures experienced solid gains on Wednesday, increasing between five cents and $1.05 in the front months, while a few deferred contracts dropped by 7 to 10 cents. The national average base hog price rose to $77.84, reflecting a 73-cent increase since Tuesday. The CME Lean Hog Index, reported at $84.34 as of October 21, marked an 11-cent rise from the previous value.

Pork Cutout Values and Slaughter Estimates: According to USDA’s Wednesday AM release, the FOB plant pork cutout value climbed by 95 cents to $98.22 per cwt. Despite this increase, prices for ribs, butts, and hams fell by 15 cents to $1.20, whereas the picnic shoulder recorded a notable increase of $3.52. Additionally, USDA estimated the Wednesday hog slaughter figure at 489,000 head, bringing this week’s total to 1.465 million head. This number represents an increase of 19,000 head compared to the previous week and is also up 9,527 head from the same week last year.

Dec 24 Hogs closed at $80.175, showing a gain of $1.050.

Feb 25 Hogs finished at $83.400, up by $0.600.

Apr 25 Hogs ended at $86.525, increasing by $0.300.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned. All information and data provided here are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

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