Lean Hog Futures Retreat While Pork Exports Reach Record Highs

Lean hog futures experienced a decline at Tuesday’s close, with contracts falling by 70 cents to settle at $1.425. The USDA reported a national average base hog negotiated price of $93.58, reflecting a $3.62 increase on stronger trading volume. Additionally, the CME Lean Hog Index rose by 18 cents on May 2, reaching $89.87.

Pork Exports Mark Historic Levels

March pork exports reached 641.02 million pounds, according to Census data adjusted to a carcass basis. This figure marks a four-year high for March and represents the third-largest total ever recorded for that month.

Market Conditions and Slaughter Estimates

On Tuesday afternoon, the FOB plant pork cutout value dipped by 96 cents per cwt, settling at $95.70 on a carcass basis. The only primal cut that showed an increase was the picnic. Meanwhile, the USDA estimated federally inspected hog slaughter at 485,000 head for Tuesday, bringing the weekly total to 967,000 head. This total reflects a decrease of 7,000 head from the previous week but is up by 9,019 head compared to the same week last year.

Price Updates for Lean Hogs

May 25 Hogs closed at $91.550, down $0.700.

June 25 Hogs closed at $97.575, down $1.425.

July 25 Hogs closed at $99.400, down $1.000.

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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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