Mixed Trading for Lean Hog Futures Amid Declining Prices

Lean hog futures displayed mixed results on Thursday. The nearby April contract saw a decrease of 82 cents, while other contracts experienced gains ranging from 22 to 60 cents. As reported by the USDA, the national average base hog negotiated price was $85.74 on Thursday morning. Furthermore, the CME Lean Hog Index fell 16 cents from the prior day, settling at $88.00 for April 8.

Export Sales Decline

Export Sales data indicated that 23,854 metric tons (MT) of pork were sold in the week ending April 3, marking a reduction to less than half of the previous week’s figures. Additionally, shipments were reported at 30,100 MT, which is the lowest level in seven weeks.

Pork Cutout Value and Slaughter Numbers

The USDA reported a 73-cent decline in the afternoon pork cutout value, which now stands at $90.03 per hundredweight (cwt). The butt, rib, and belly cuts saw increases, contributing to a mixed performance for various pork products. On Wednesday, USDA estimated that federally inspected hog slaughter reached 487,000 head, bringing the week-to-date total to 1.463 million head. This figure represents an increase of 25,000 head from the previous week and is 34,319 head higher than the same period last year.

Current Contract Prices

The following are the latest prices for lean hog contracts:

• Apr 25 Hogs: $86.150, down $0.825
• May 25 Hogs: $86.350, up $0.225
• Jun 25 Hogs: $92.275, up $0.575

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.

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