Lean Hog Futures Decline Amidst Weak Export Sales and Prices

Lean hog futures saw significant losses ranging from 87 cents to $2.50 during Thursday’s trading session. The USDA reported a Thursday afternoon national average base hog price of $89.15, reflecting a decrease of $2.49 from the previous day. Meanwhile, the CME Lean Hog Index increased by 7 cents from the day before, settling at $89.77 on March 11.

According to the USDA’s export sales data, pork sales totaled only 20,262 metric tons (MT) for the week ending March 6, marking a low for the calendar year. Mexico emerged as the largest purchaser, buying 6,300 MT, while Japan acquired 5,100 MT. In contrast, shipments increased to 33,570 MT compared to the prior week, with 11,200 MT sent to Mexico and 5,900 MT to South Korea.

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On Thursday, USDA’s FOB plant pork cutout price increased by $2.71, reaching $97.29 per hundredweight (cwt). Among the primal cuts, only the rib saw a decline, while the belly surged by $10.84. Additionally, USDA estimated that federally inspected hog slaughter reached 489,000 head on Thursday, contributing to a weekly total of 1.954 million head. This figure is 136,000 head above last week and 59,418 head higher than the same week last year.

As for futures closing prices:

• Apr 25 Hogs closed at $85.625, a decrease of $0.875.
• May 25 Hogs closed at $88.800, down $1.650.
• Jun 25 Hogs closed at $96.200, a decline of $2.500.

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.

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