Lean Hog Futures Jump, Riding on Strong Market Demand

Lean hog futures closed on a positive note Friday, with contracts climbing between 85 cents and $1.25. June futures gained $3.125 over the past week, surpassing the $100 mark. Preliminary open interest increased by 4,688 contracts, primarily in June. The USDA reported a national average base hog negotiated price that rose 8 cents to $91.39 in the Friday PM report. Additionally, the CME Lean Hog Index reported a 52-cent rise from the previous day, settling at $87.27 on April 23.

Market Trends and Speculator Movements

According to Friday afternoon’s Commitment of Traders data, speculators added 18,235 contracts to their net long positions as of April 22, bringing the total to 58,457 contracts.

Pork Cutout Value and Slaughter Estimates

In afternoon trading, the pork cutout value increased by $2.18, reaching $98.04, as per the USDA report. While picnic, rib, and ham primals saw a decline, the belly primal surged by $9.75. Last week, federally inspected hog slaughter was estimated at 2.371 million head, marking an increase of 59,000 head from the previous week but down 22,156 head from the same week last year.

Summary of Recent Hog Futures

On Friday, closing prices for the upcoming hog futures were as follows:

• May 25 Hogs: $92.800, up $0.850
• Jun 25 Hogs: $101.150, up $1.225
• Jul 25 Hogs: $101.175, up $1.125

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 are for informational purposes only. For further details, please review 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.