Market Overview

Lean hog futures experienced a significant downturn on Tuesday, erasing the gains made earlier in the week as prices plummeted by 12 cents to $1.10. The April contract took the lead in the downward spiral while widening the discount between April and June to $16.42. USDA’s National Average Afternoon Base Hog price managed to recover slightly by 47 cents, resting at $74.63. In the West Central region, hog prices stood at $74.56, while the East Central quotes were kept confidential to safeguard privacy. The CME Lean Hog Index exhibited a minor uptick of 11 cents on 2/29, reaching $80.26.

Pork Cutout Futures

The nearby pork cutout futures were also hit by the market downturn, closing between 55 and 87 cents lower. Trading volume in this sector remains thin, with only 37 active contracts for April. The USDA’s national Pork Carcass Cutout Value saw a decline of $1.39 in the Tuesday afternoon pricing, with bellies taking the biggest hit at $10.71 lower. The respective values were noted at $91.43 for regular pork cutout and $121.61 for bellies. According to USDA data, hog slaughter under federal inspection tallied 454,000 head by Tuesday, bringing the week’s total to 947,000, a decrease from the previous week’s 983,000 head and the same week last year’s 950,000.

Price Movements

Apr 24 Hogs closed at $85.175, down $1.100, while May 24 Hogs closed at $91.575, down $0.400. Additionally, Apr 24 Pork Cutout concluded at $92.500, down $0.875.

Disclaimer: Alan Brugler had no positions in the securities mentioned in this article. The information provided is solely for educational purposes. For further details, refer to the Barchart Disclosure Policy.

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