Lean Hog Futures Experience Notable Declines Amid Strong Export Sales

Lean hog futures saw losses ranging from 45 to 92 cents on Thursday. In contrast, the national average base hog negotiated price rose to $80.44 in the morning report, reflecting an increase of 72 cents from the previous day. The CME Lean Hog Index stood at $81.10 on January 14, marking an 11-cent rise from the day before.

According to Export Sales data, a total of 30,257 metric tons (MT) of pork were shipped during the week ending January 9. Among the buyers, Mexico was the largest, importing 11,700 MT. South Korea received 5,000 MT. Notably, total shipments reached 38,180 MT—the highest amount since last April—of which 16,300 MT went to Mexico and 4,900 MT was destined for Japan.

The USDA reported that the FOB plant pork cutout value increased by 3 cents to $90.86 per hundredweight (cwt) in Thursday’s morning update. Only the loin, butt, and rib cuts reported higher prices, while other cuts experienced declines. On Wednesday, federally inspected hog slaughter reached 490,000 head, contributing to a week-to-date total of 1.453 million head. This figure surpasses last week’s total by 35,000 head and is 149,668 head higher compared to the same week last year.

Feb 25 Hogs are priced at $82.200, reflecting a decrease of $0.925.

Apr 25 Hogs are currently at $90.475, down by $0.550.

May 25 Hogs are valued at $95.125, showing a decline of $0.450.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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