Lean Hog Futures Rise with Strong Export Demand

Lean hog futures showed notable gains on Thursday, with contracts increasing by $1.67 to $1.85 for nearby deliveries. The USDA’s national average base hog negotiated price rose to $94.79, up by $1.18 from the previous week. Additionally, the CME Lean Hog Index increased 46 cents on May 13, reaching $90.77.

Export Insights

Pork export bookings reached 24,617 metric tons (MT) for the week ending May 8, marking a recovery from the week prior. Mexico led as the top buyer with 10,600 MT, while Japan purchased 3,500 MT. Total exports peaked at 26,488 MT, a three-week high. Notably, 12,000 MT went to Mexico, and 4,100 MT to Japan.

Pork Cutout Value and Slaughter Estimates

USDA’s FOB plant pork cutout value increased by $2.58 in Thursday’s PM report, reaching $99.72. Among the cuts, only the picnic primal showed a decline, while the belly surged by $7.66. USDA’s estimated federally inspected hog slaughter for Thursday stood at 481,000 head, bringing the weekly total to 1.914 million head. This figure is down by 8,000 head compared to the previous week, but still shows an increase of 5,272 from the same week last year.

Hog Futures Prices

June 25 Hogs closed at $100.700, up $1.850.
July 25 Hogs closed at $104.125, up $1.675.
August 25 Hogs closed at $103.350, up $1.700.

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 are for informational purposes only. For further information, please refer to the Barchart Disclosure Policy here.

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