On Wednesday, lean hog futures fell significantly, with losses ranging from $3.25 to $3.60. This decline was attributed to long liquidation, as preliminary open interest dropped by 9,466 contracts. The USDA reported a national average base hog negotiated price of $91.98, an increase of 19 cents from the previous day, while the CME Lean Hog Index rose by 70 cents to $90.19.
The USDA’s afternoon report indicated a drop in the pork cutout value of $3.95, bringing it to $95.52 per cwt, primarily driven by a $16.75 decrease in the belly category. Federally inspected hog slaughter was estimated at 489,000 head on Wednesday, contributing to a weekly total of 1.457 million head, which is 15,000 below the prior week and down 9,166 from the same week last year.
As for futures, April 25 hogs closed at $89.750 (down $3.450), May 25 hogs at $93.625 (down $3.250), and June 25 hogs at $101.675 (down $3.575).
