Lean Hog Futures Dive Deeper

The hog market is currently experiencing a downturn, with lean hog futures tumbling by 42 cents to $1.20 at midday. This plunge has further widened the gap between April contracts and the deferred ones. The USDA’s National Average Base Hog price showed a decline of 37 cents to $72.88 in the latest morning quote, painting a grim picture of the market sentiment.

Market Indicators and Impact

The CME Lean Hog Index, a crucial benchmark, managed to edge up by 11 cents on the penultimate day of February, settling at $80.26. However, the Pork Carcass Cutout Value saw a substantial drop of $1.24 this morning, driving the value down to $91.58. This downward trajectory was particularly notable in the bellies category, which witnessed a staggering decline of $12.50.

Slaughter Report and Comparative Analysis

According to the USDA’s recent report, the FI pork slaughter stood at 493k head, showing a slight increase from the previous week’s 492k. Comparing year-on-year data, this figure is notably higher than the corresponding period in the previous year when the slaughter stood at 465.7k head, accentuating the current challenges faced by the hog market.

April 24 Hogs  are currently priced at $84.975, experiencing a decline of $1.300. Following suit, May 24 Hogs  are trading at $91.150, down by $0.825 from the previous session.

April 24 Pork Cutout  stands at $92.500, registering a decrease of $0.875, underlining the prevailing bearish sentiment in the hog market.

It’s worth noting that as of the publication date, Alan Brugler had no direct or indirect positions in any securities mentioned in this article. All data and information shared in this piece are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.

Lastly, the opinions expressed here are solely those of the author and do not necessarily align with the views of Nasdaq, Inc.