Lean Hog Futures Rise as USDA Reports Improved Prices

Lean hog futures experienced a slight increase of 65 cents in the front months on Monday. As of Monday afternoon, the USDA reported the national average base hog negotiated price at $83.59, reflecting a rise of 24 cents from the previous day. Additionally, the CME Lean Hog Index saw a gain of 25 cents, sitting at $85.46 as of April 17.

Market Position and Trading Activity

According to Friday’s Commitment of Traders report, speculators increased their net long positions by 3,960 contracts, bringing the total net position to 40,222 contracts as of April 15.

Pork Cutout Report and Slaughter Estimates

In Monday’s pork cutout report from the USDA, prices were down 61 cents to $96.39. The loin, butt, and belly primals saw declines, while the rib primal stood out with a significant increase of $9.66. The USDA estimated Monday’s federally inspected hog slaughter at 356,000 head, which was down 131,000 from the previous week and 125,333 head lower than the same week last year.

Hog Futures Pricing

May 25 Hogs closed at $91.025, marking an increase of $0.625.

June 25 Hogs closed at $98.050, up $0.025.

July 25 Hogs closed at $98.250, rising by $0.150.

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