Midday Lean Hog Futures Decline Amidst Weak Export Sales

Lean hog futures are trading lower at midday, with prices ranging from 27 cents to $2 down. The USDA reported the national average base hog negotiated price at $89.80 on Thursday morning. Additionally, the CME Lean Hog Index increased slightly, gaining 7 cents from the previous day to settle at $89.77 on March 11.

Export Sales Data Indicate Weakness

The USDA’s latest export sales data revealed a disappointing total of just 20,262 metric tons (MT) of pork sold for the week ending March 6, marking a calendar year low. Mexico emerged as the top buyer, acquiring 6,300 MT, while Japan purchased 5,100 MT. Pork shipments totaled 33,570 MT, which reflects an increase from the previous week. Mexico received 11,200 MT, and South Korea imported 5,900 MT.

USDA Reports Increase in Pork Cutout Values

In other market developments, the USDA reported a rise in the FOB plant pork cutout value, which increased by $4.18 to $98.76 per hundredweight. All primals experienced upticks, with the belly cuts seeing the most significant boost, up $16.53. Furthermore, USDA’s estimate for Wednesday’s federally inspected hog slaughter stood at 489,000 head, bringing the weekly total to 1.465 million head. This figure is 133,000 head more than last week and 41,579 head larger than the same week last year.

Current Lean Hog Prices

Current futures prices are as follows:

• April 25 Hogs: $86.225, down $0.275
• May 25 Hogs: $89.375, down $1.075
• June 25 Hogs: $96.700, down $2.000

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.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.