Lean Hog Futures and Export Sales: Key Market Updates

Lean hog futures experienced a decline, with contracts down by 15 to 50 cents for the nearby months, while July saw an increase of 75 points. The USDA reported a national average base hog negotiated price at $94.02 on Thursday afternoon, marking a $1 increase. Additionally, the CME Lean Hog Index rose 3 cents to $90.16 as of May 6.

Pork Export Sales Overview

In the week ending May 1, USDA reported a total of 24,228 MT of pork sold for export, a decrease from the prior week. Notably, Mexico purchased 9,900 MT, while Japan acquired 3,500 MT. Total shipments reached 25,573 MT, representing the second-lowest level for the calendar year. Among these shipments, 11,000 MT was allocated for Japan.

Pork Cutout Values and Slaughter Estimates

On Thursday afternoon, the FOB plant pork cutout value decreased by $1.04 per cwt on a carcass basis, settling at $94.50. While the picnic and ham primals saw an increase, federally inspected hog slaughter was estimated at 484,000 head for Thursday, with a weekly total of 1.922 million head. This reflects a decrease of 16,000 head from the previous week but is 15,290 head higher than the same week last year.

Recent Lean Hog Futures Prices

May 25 Hogs closed at $90.650, down $0.500.

Jun 25 Hogs closed at $97.175, down $0.150.

Jul 25 Hogs closed at $100.250, up $0.775.

On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data in this article are 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.