Lean Hog Futures Decline Amid Weaker Prices and Slaughter Data

Lean hog futures experienced a decline on Monday, with contracts trading down between 50 cents to $1.40 by midday. The USDA reported the national average base hog negotiated price at $88.03, reflecting a decrease of 23 cents from the previous day. Additionally, the CME Lean Hog Index for March 20 dropped by 32 cents, landing at $88.88.

Traders Adjust Positions in Lean Hog Futures

According to weekly Commitment of Traders data from the CFTC, a total of 1,138 contracts were added back to the net long position in lean hog futures and options as of March 18. This adjustment brought the net long to 56,709 contracts, indicating continued interest despite recent market fluctuations.

Pork Cutout and Slaughter Numbers Update

In the morning’s FOB plant report, the USDA noted that the pork cutout value increased by $1.53, reaching $98.39 per cwt. The ham was the only primal reporting a decline. USDA’s estimates indicate that last week’s federally inspected hog slaughter totaled 2.428 million head. This figure is down by 81,000 from the prior week and 92,684 head lower than the same period last year, affected by inclement weather and transport challenges.

Current Lean Hog Futures Prices

Apr 25 Hogs stand at $85.600, down $0.525.

May 25 Hogs are priced at $88.825, down $0.825.

Jun 25 Hogs are trading at $96.100, down $1.375.

On the date of publication, Austin Schroeder did not hold any direct or indirect positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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