Lean Hog Futures Decline Amid Mixed Market Signals

Market Summary for Lean Hogs on Monday

Lean hog futures ended Monday’s trading session with losses ranging from $2 to $2.52. On the same day, the national average base hog negotiated price increased by $1.54, reaching $78.81. The CME Lean Hog Index was recorded at $84.85 on December 26, down by 25 cents from the day before.

Speculation Trend in Hog Futures

The Commitment of Traders report revealed that managed money spec funds reduced their net long positions in lean hog futures and options by 323 contracts, totaling 121,965 contracts.

Pork Market Update from USDA

According to the USDA, the FOB plant pork cutout value on Monday afternoon decreased by 75 cents, now standing at $94.32 per cwt. Ham and belly primal cuts were less valuable, dropping by $7.01 and $2.95 respectively. The estimated federally inspected hog slaughter for Monday remained steady at 490,000, matching last week’s numbers.

Closing Prices for Futures Contracts

Feb 25 Hogs closed at $81.625, down $2.525.

Apr 25 Hogs closed at $87.050, down $2.475.

May 25 Hogs closed at $91.375, down $2.250.

On the date of publication, Austin Schroeder did not hold 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 those of the author and do not necessarily reflect those of Nasdaq, Inc.