Lean Hog Futures Rise with Positive Market Signals

Quarterly Hogs & Pigs Report Anticipated Amid Market Gains

Lean hog futures have shown strong performance on Friday, gaining between $1.20 and $1.65. The national average base hog negotiated price went unreported Friday morning due to light trading volumes, maintaining a 5-day rolling average at $79.61. Meanwhile, the CME Lean Hog Index stood at $84.21 on December 18, reflecting a slight increase of five cents from the prior day.

The upcoming quarterly Hogs & Pigs report is set for release on Monday, provided there is no government shutdown. A Reuters survey of traders has predicted a 0.1% rise in total hog inventories as of December 1 compared to last year. This includes a projected 0.1% increase in market hogs, while breeding inventory is expected to remain stable.

The USDA’s FOB plant pork cutout value also increased this Friday afternoon, climbing $2.15 to reach $98.30 per cwt. Notably, the loin and ham primals experienced declines, but the belly primal surged ahead with a remarkable rise of $13.51. Furthermore, the USDA estimated Thursday’s federal inspection hog slaughter at 487,000 head, bringing the total for the week to 1.950 million head. This figure reflects an increase of 14,000 head from the previous week and an additional 18,832 head from the same week last year.

Feb 25 Hogs are priced at $85.275, marking a $1.650 increase.

Apr 25 Hogs are now at $89.925, up by $1.300.

May 25 Hogs sit at $93.925, having risen $1.200.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are presented solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy.

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