Lean Hog Futures Show Mixed Results Amid Price Adjustments

Lean hog futures experienced mixed results on Friday, with contract prices fluctuating between a decline of 27 cents and an increase of 40 cents. Notably, June contracts fell by $1.77 this week. According to the USDA, the national average base hog negotiated price was reported at $94.47 on Friday afternoon, marking an increase of $0.45. In contrast, the CME Lean Hog Index decreased by 9 cents on May 7, settling at $90.07.

Managed Money Increases Positions

As of May 6, managed money raised their net long position in lean hog futures and options by 2,979 contracts, bringing the total to 70,622 contracts.

Pork Cutout Value and Slaughter Estimates

On Friday afternoon, the FOB plant pork cutout value increased by $3.33 per hundredweight (cwt) on a carcass basis, now standing at $97.83. The belly was the only primal to report a decrease. The USDA estimated the federally inspected hog slaughter for this week at 2.437 million head. This figure reflects a decrease of 49,000 head compared to the previous week, but is 56,877 head higher than the same period last year.

Current Hogs Prices

May 25 Hogs closed at $90.375, down $0.275.

Jun 25 Hogs closed at $97.575, up $0.400.

Jul 25 Hogs closed at $100.425, up $0.175.

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

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