Lean Hog Futures See Modest Gains Amid Mixed Market Conditions

Subheading: February and April Contracts Rise Slightly as Prices Move Up

Lean hog futures closed Wednesday with front-month contracts gaining 37 to 97 cents, while back-month contracts dropped by 20 to 55 cents. The national average base hog negotiated price increased to $78.03 on Wednesday afternoon, reflecting a 24-cent rise from the previous day. Additionally, the CME Lean Hog Index reported at $83.98 on December 16, marking a 14-cent increase from the day before.

The U.S. Department of Agriculture (USDA) reported an uptick in the FOB plant pork cutout value on Wednesday afternoon, which rose by $1.58 to reach $96.35 per hundredweight (cwt). Slight declines were noted in the loin, butt, and picnic primals, while the remaining three primal cuts experienced moderate increases. The USDA’s estimated hog slaughter for Wednesday was 488,000 head, bringing the week-to-date total to 1.463 million head. This figure is slightly below last week’s total by 1,000 head, yet it shows an increase of 16,438 head compared to the same week last year.

Feb 25 Hogs closed at $83.700, up $0.500.

Apr 25 Hogs closed at $88.900, up $0.850.

May 25 Hogs closed at $92.675, up $0.975.

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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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