Lean Hog Futures Rise Despite Declines in Cash Prices and Slaughter Rates
Lean hog futures increased by $1.30 to $1.80 on Monday. However, the USDA reported a decrease in the national average base hog negotiated price, which fell by $1.11 in the afternoon to $81.99. Additionally, the CME Lean Hog Index declined by 81 cents from the prior day, now standing at $86.86 as of April 10.
Pork Cutout Value Increases Amidst Lower Slaughter Estimates
On a positive note, the pork cutout value climbed by 82 cents according to USDA data, reaching $92.78. The increase was mainly driven by a $6.86 rise in the price of the butt cut, despite lower prices for both the butt and rib cuts. USDA estimated that federally inspected hog slaughter for Monday totaled 487,000 head, which is a decrease of 1,000 head from the previous Monday and 4,342 head lower than the same day last year.
Futures Close Higher on April 25
In futures trading on April 25, the closing prices were as follows:
- Apr 25 Hogs closed at $85.475, up $0.050
- May 25 Hogs closed at $87.950, up $1.375
- Jun 25 Hogs closed at $95.125, up $1.800
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 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.
