Lean Hog Futures Decline Amid Sluggish Export Sales

Lean hog futures ended the Thursday session lower, with contracts falling between 87 cents and $2.50. According to the USDA, the national average base hog negotiated price came in at $89.15, down $2.49 from the previous day. The CME Lean Hog Index rose slightly, increasing by 7 cents to $89.77 as of March 11.

Export Sales and Shipment Overview

The USDA’s Export Sales report indicates a total of just 20,262 metric tons (MT) of pork sold in the week ending March 6, marking a calendar year low for sales. Mexico emerged as the largest buyer, purchasing 6,300 MT, while Japan secured 5,100 MT. Pork shipments totaled 33,570 MT, showing an increase from the week before, with Mexico receiving 11,200 MT and South Korea importing 5,900 MT.

USDA Pork Cutout Value and Slaughter Estimates

In the Thursday afternoon report, USDA’s FOB plant pork cutout value rose by $2.71 to reach $97.29 per hundredweight. Out of the various primal cuts, only the rib reported a dip, while the belly saw significant gains, climbing by $10.84. Furthermore, USDA estimated that federally inspected hog slaughter reached 489,000 head on Thursday. The weekly total increased to 1.954 million head—up by 136,000 from last week and larger by 59,418 compared to the same week last year.

Futures Prices Update

For futures contracts as of Thursday:

• April 25 Hogs closed at $85.625, down $0.875
• May 25 Hogs closed at $88.800, down $1.650
• June 25 Hogs closed at $96.200, down $2.500

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