Lean Hog Futures Decline Amid Growing Pork Exports

Lean hog futures experienced losses on Thursday, ranging from 27 to 82 cents. The national average base hog negotiated price stood at $80.24, reflecting a slight increase of 3 cents from the previous day. Meanwhile, the CME Lean Hog Index was reported at $81.10 on January 14, which is up 11 cents compared to the day before.

Pork Export Sales See Significant Activity

According to Export Sales data, a total of 30,257 metric tons (MT) of pork were shipped during the week of January 9. Mexico emerged as the largest buyer, purchasing 11,700 MT, while South Korea acquired 5,000 MT. Total shipments reached 38,180 MT, marking the highest total since last April. Among those shipments, 16,300 MT were bound for Mexico and 4,900 MT for Japan.

Pork Cutout Values and Slaughter Rates

The USDA’s FOB plant pork cutout value dropped by 44 cents, settling at $90.39 per cwt in Thursday’s afternoon report. Only the loin and butt cuts saw price increases, while other cuts experienced declines. Federally inspected hog slaughter for Thursday totaled 488,000 head, contributing to a week-to-date total of 1.935 million head. This figure is 34,000 head higher than last week and significantly exceeds the same week in the previous year.

Current Futured Prices

Feb 25 Hogs closed at $82.300, down $0.825.

Apr 25 Hogs closed at $90.550, down $0.475.

May 25 Hogs closed at $95.300, down $0.275.

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.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.