Lean Hog Futures Experience Mixed Results Following Inventory Report
December Inventory Shows Mild Increase in Hog Numbers
Lean hog futures ended Tuesday with prices dropping between 5 and 45 cents for nearby contracts, while some contracts inched up by as much as 62 cents. The CME Lean Hog Index stood at $84.35 on December 19, reflecting a 14-cent rise from the prior day.
Breeding Hogs Slightly Up Amid Overall Inventory Growth
Monday afternoon’s quarterly Hogs & Pigs report indicated a December 1 inventory of 75.845 million head, marking a 0.51% increase from last year. Breeding hogs rose just 5,000 head to 6.004 million, while market hogs increased by 0.54% to 68.841 million head. The pig crop from September to November saw a growth of 2.03% with a total of 35.238 million head, and pigs per litter also grew by 2.2% to 11.92. Looking ahead, farrowing intentions for December-February are set at 2.93 million head, a slight rise of 0.03%, and an increase of 1.37% to 2.953 million head for the March-May period.
Stock Levels Reach Historic Lows
As of November 30, pork stocks totaled 391.08 million pounds, according to NASS Cold Storage data. This marks an 8.27% decrease from the previous month and a 5.91% drop compared to last year, representing the lowest level for any month since August 2010 and the tightest November total since 1997.
FOB Plant Reports on Hold for Holidays
The USDA’s FOB plant pork cutout report will not be available on Tuesday or Wednesday due to the holidays, with resumption set for today. The latest report showed a decline of $2.66 on Monday, bringing the value down to $96.62 per cwt.
Hog Futures Closing Prices
Feb 25 Hogs closed at $84.375, unchanged,
Apr 25 Hogs closed at $89.175, down $0.450,
May 25 Hogs closed at $93.250, down $0.075.
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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