Lean Hog Futures Experience Modest Gains as Slaughter Rates Decline

Substantial Weekly Progress: Lean hog futures increased on Friday, showing gains of 20 to 60 cents across contracts. For the week, February futures rose by $3.07.

The national average base hog negotiated price fell to $83.17 by Friday afternoon, a decrease of $3.06 from the previous day. Meanwhile, the CME Lean Hog Index recorded a value of $85.05 on February 5, marking a rise of 45 cents day-over-day.

Furthermore, as of February 4, managed money added 3,393 contracts to their net long position in lean hog futures and options, raising the total to 95,329 contracts.

Increased Pork Value Amidst Slaughter Trends: According to USDA’s reports, the FOB plant pork cutout value rose by $1.36 to reach $97.00 per cwt. While the loin and rib primals saw prices decline, belly primals increased by an impressive $7.52. Estimated federally inspected hog slaughter for the week stood at 2.536 million head. This figure was 33,000 head lower than last week, primarily due to reduced Saturday kill rates, and down 87,899 head compared to the same week last year.

February 25 Hogs closed at $87.250, up $0.600.

April 25 Hogs closed at $92.150, up $0.400.

May 25 Hogs closed at $96.025, up $0.200.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data are provided solely for informational purposes. For additional information, please review the Barchart Disclosure Policy here.

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