Lean Hog Futures Continue to Decline as New Year Approaches

Lean hog futures are experiencing a downward trend on Tuesday, with losses ranging from 77 cents to $1.07 for contracts expiring in 2024. The national average base hog negotiated price was reported at $79.59 on Tuesday morning. Additionally, the CME Lean Hog Index stood at $84.35 on December 27, reflecting a decline of 50 cents from the previous day. Notably, the market will remain closed on Wednesday for New Year’s Day.

Speculative Trading Activity Shows Pullback

In recent trading data, managed money speculators reduced their net long positions in lean hog futures and options by 323 contracts, bringing the total to 121,965 contracts.

Pork Cutout Values and Slaughter Rates Reflect Market Changes

The USDA’s FOB plant pork cutout value decreased by $2.41 in the Tuesday morning report, now sitting at $91.91 per cwt. Only the rib primal saw an increase, while other primals, particularly the picnic, dropped significantly, with a decrease of $6.43. The estimated federally inspected hog slaughter for Monday was reported at 490,000, showing no change compared to last Monday.

Current Futures Prices

Feb 25 Hogs are at $80.550, down $1.075.

Apr 25 Hogs are at $86.225, down $0.825.

May 25 Hogs are at $90.600, down $0.775.

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 here.

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