Lean Hog Futures Steady Amid Fluctuating Market Conditions
On Monday, lean hog futures showed small gains, with most contracts rising between a dime to 75 cents. In contrast, February futures fell by $1.125. The national average base hog negotiated price reported was $79.65, reflecting a slight increase of 6 cents from the previous day. Meanwhile, the CME Lean Hog Index stood at $83.12 on January 2, down 87 cents from the day before.
Speculation and Trading Activity
As of December 31, managed money spec funds reduced their long positions in lean hog futures and options, trimming 13,044 contracts to a total of 108,941 contracts.
Pork Cutout Values and Slaughter Estimates
The USDA’s FOB plant pork cutout value decreased by $1.71 in the Monday afternoon report, bringing the total to $87.83 per hundredweight. Notably, the belly was the only primal cut that saw a price rise, up by $5.81. The federally inspected hog slaughter for Monday was estimated at 447,000 head. This figure represents a decline of 54,000 head compared to the previous Monday and is down 21,922 head from the same day last year.
Contract Closing Prices
Feb 25 Hogs closed at $79.65, down $1.125.
Apr 25 Hogs closed at $85.875, up $0.100.
May 25 Hogs closed at $90.700, up $0.125.
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 is 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.
