Lean Hog Futures Show Mixed Results Amid Declining Prices
Market Performance Summary
Lean hog futures rose by 15 to 50 cents on Friday, despite a decline in overall prices. The national average base hog price was reported at $72.05, a decrease of $4.10 from the previous day. The CME Lean Hog Index stood at $83.84 on October 16, down a penny from the previous day.
Pork Exports Decline but Shipments Increase
Pork export sales for the week ending October 10 reached 38,100 metric tons (MT), representing a drop of 24.8% from the week before. Mexico emerged as the top buyer, purchasing 8,900 MT, while Japan bought 7,800 MT. Despite the sales decline, export shipments totaled 34,000 MT, which marked a significant 49.2% increase from the prior week. This included 8,900 MT sent to Mexico and another 7,800 MT shipped to Japan.
Speculative Positions on the Rise
According to the Commodity Futures Trading Commission (CFTC), speculative funds in lean hog futures and options have increased their net long position by 4,388 contracts as of October 15, bringing the total to 74,987 contracts.
Pork Cutout Values and Slaughter Numbers
The USDA reported an increase of 18 cents in the FOB plant pork cutout value, now at $96.59 per hundredweight (cwt). Among the primal cuts, the belly showed the most significant gain, rising by $5.76, while the loin, butt, and picnic cuts experienced declines. The USDA also estimated that the weekly federally inspected hog slaughter reached 2.613 million head—up 29,000 from the previous week but down by 2,899 from the same week last year.
Future Prices of Lean Hogs
Dec 24 Hogs are priced at $77.825, an increase of $0.150.
Feb 25 Hogs are at $81.850, up $0.300.
Apr 25 Hogs are at $85.625, reflecting an increase of $0.500.
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 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.
