Lean Hog Futures Decline Amid Fluctuating Prices and Production Reports

Lean hog futures faced losses on Tuesday, ranging from 45 cents to $1.75, with the nearest contracts experiencing the largest declines. The USDA reported the national average base hog negotiated price at $90.98 on Tuesday afternoon, reflecting an increase of $2.08 compared to the previous day. However, the CME Lean Hog Index decreased by 29 cents from the previous day, landing at $89.71 as of March 7.

Production Forecast Adjustments

According to the USDA’s WASDE report, projected pork production for 2025 is now set at 28.425 billion pounds. This figure represents a decrease of 105 million pounds from last month due to anticipated lower output in the first quarter.

Market Insights and Slaughter Numbers

The USDA reported that the FOB plant pork cutout price decreased by 64 cents on Tuesday afternoon, bringing the total to $97.58 per hundredweight. Among the primal cuts, ribs and hams showed price increases. The estimated number of federally inspected hogs slaughtered on Tuesday was 489,000, with a weekly total expected to reach 976,000 head. This result indicates an increase of 10,000 head compared to last week, and it is 36,706 head larger than the same week last year.

Closing Prices for Lean Hogs

The closing prices for lean hog futures on April 25 showed the following changes:

• Apr 25 Hogs: closed at $86.550, down $1.750
• May 25 Hogs: closed at $90.200, down $1.275
• Jun 25 Hogs: closed at $98.375, down $0.450

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 for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

More news from Barchart

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