Mixed Results for Lean Hog Futures on Friday Despite Weekly Gains

Lean hog futures showed a varied performance on Friday. The nearby June futures dropped by 37 cents, while other contracts recorded gains ranging from 5 to 30 cents. Notably, June futures gained $2.75 over the week. The USDA reported the national average base hog negotiated price at $88.10 on Friday afternoon, marking a decrease of $6.69 from the previous day. The CME Lean Hog Index increased by 25 cents on May 14, reaching $91.02.

COT Report Highlights Increased Long Positions

Data from the weekly Commitment of Traders (COT) report revealed that large money managers increased their net long position in lean hog futures and options by a total of 10,464 contracts as of Tuesday. This brought the net long position to 81,086 contracts as of May 13.

Pork Cutout Value and Slaughter Rates

The FOB plant pork cutout value rose by 40 cents on Friday afternoon, settling at $100.12. However, both the loin and belly primals saw declines. The USDA estimated federally inspected hog slaughter at 2.409 million head for the week. This figure is down by 38,000 head from the previous week and 3,357 head below the same week in the previous year.

Closing Prices for Lean Hogs

June 25 Hogs closed at $100.325, down $0.375.

July 25 Hogs closed at $104.175, up $0.050.

August 25 Hogs closed at $103.625, up $0.275.

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