Lean Hog Futures Dip as Market Faces Export Sales Slowdown

Lean hog futures closed Thursday’s session with a slight decline, falling back to 25 cents in the front months. The USDA reported the national average base hog negotiated price at $89.39, a decrease of $1.63 from the previous day. Additionally, the CME Lean Hog Index rose by 9 cents, reaching $89.41 on March 18.

Pork Export Sales Decline

This week saw a notable drop in pork export sales, totaling just 18,069 MT for the week ending March 13, marking a calendar year low. Mexico purchased 4,700 MT, while Japan acquired 3,500 MT. In terms of shipments, the total reached 32,851 MT, significantly down from last year. Notably, Mexico received 11,000 MT, and South Korea imported 6,200 MT.

USDA Reports on Pork Cutout and Slaughter

Thursday afternoon’s USDA FOB plant pork cutout was reported up by 67 cents to $95.86 per cwt, although the picnic and ham categories were the only primals that saw a decline. The estimated federally inspected hog slaughter for Thursday stood at 471,000 head, bringing the week-to-date total to 1.804 million head. This figure is down 150,000 from the previous week and 142,667 head lower than the same week last year.

Lean Hog Futures Closing Prices

Apr 25 Hogs closed at $85.550, down $0.025.

May 25 Hogs closed at $88.600, down $0.100.

Jun 25 Hogs closed at $96.250, down $0.250.

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
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