Lean Hogs Market Experiences Mixed Results This Week

Front Month Contracts Dip While Deferred Show Gains

Lean hogs ended Monday with front-month contracts slipping slightly to 85 cents, while deferred contracts rose between 25 and 47 cents. The national average base hog price stood at $77.50, reflecting a decrease of $1.56 compared to the previous day. The CME Lean Hog Index reported a value of $88.56 on October 31, an increase of 63 cents from the previous day.

Changes in Pork Cutout Value and Slaughter Estimates

The USDA’s FOB plant pork cutout value saw a minor rise of 4 cents in the Monday PM report, reaching $104.01 per hundredweight (cwt). The loin, butt, picnic, and rib primals experienced gains, with increases ranging from 52 cents to $4.33. However, the belly primal faced a notable decline, losing $4.64. Furthermore, USDA estimated the Monday Federal Inspection hog slaughter at 489,000 head, which is 1,000 head more than the previous Monday but 1,920 head fewer than during the same week last year.

Market Closures for December, February, and April Contracts

Dec 24 Hogs closed at $83.225, down $0.850.

Feb 25 Hogs finished at $85.325, a drop of $0.700.

Apr 25 Hogs settled at $88.600, down $0.300.

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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