Lean Hog Futures Decline as Pork Exports Hit Record Highs
Market Overview
Lean hog futures ended the Tuesday session lower, with prices dropping between 7 to 47 cents. By Tuesday afternoon, the national average base hog negotiated price stood at $78.89, marking a decrease of 76 cents from the previous day. The CME Lean Hog Index reported at $82.01 as of January 3, reflecting a decline of $1.11 from the day before.
Pork Exports Show Significant Growth
According to Census data, pork exports in November reached a record high of 643.5 million pounds, an increase of 5.9% compared to last year and up 10.4% from October’s totals.
USDA Report Insights
The USDA’s FOB plant pork cutout value rose 57 cents in Tuesday’s afternoon report, landing at $88.40 per hundredweight (cwt). The loin and picnic cuts were the exceptions, showing declines. In terms of hog processing, an estimated 487,000 hogs were inspected on Tuesday, bringing the weekly total to 934,000. This figure represents an increase of 42,000 from the previous week and is 90,078 head higher than the same week last year.
Hog Futures Closing Prices
February 25 Hogs closed at $79.175, a drop of $0.475. April 25 Hogs finished at $85.725, down $0.150, while May 25 Hogs ended at $90.625, which is a decrease of $0.075.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
