Lean Hog Futures Show Mixed Results Amid Market Shifts
National Average Base Price Sees Modest Increase
Lean hog futures experienced varied trading, with most contracts down between 7 to 55 cents, although some spring contracts gained 5 cents. By Thursday afternoon, the national average base hog negotiated price was reported at $79.45, a rise of $1.42 from the previous day. Additionally, the CME Lean Hog Index stood at $84.16 on December 17, reflecting an increase of 18 cents from the day before.
Upcoming Hogs & Pigs Report Hints at Stable Inventory
A quarterly Hogs & Pigs report is scheduled for release on Monday. A Reuters survey among traders indicates that all hogs inventory as of December 1 is expected to rise by 0.1% compared to last year. Furthermore, the market hog count is also anticipated to be up by 0.1%, while breeding inventory is projected to remain unchanged.
Pork Export Sales Reach 6-Week Low, Shipments Decline
In the week leading up to December 12, export sales data revealed that pork bookings for 2024 shipments totaled 11,223 MT, alongside 5,813 MT sold for 2025. The combined figure reached 17,036 MT, marking a 6-week low. Shipments recorded in this timeframe were 31,552 MT, the lowest amount in the last three weeks, with Mexico receiving 12,800 MT and Japan receiving 3,800 MT.
Pork Cutout Values and Slaughter Numbers Update
The USDA’s FOB plant pork cutout value reported a decline on Thursday morning, lowering 20 cents to $96.15 per cwt. While the loin, butt, and picnic primals increased in price, the rib primal saw a notable drop of $4.40. The USDA estimated Thursday’s federal inspection (FI) hog slaughter at 487,000 head, bringing the weekly total to 1.950 million head. This figure is 14,000 head higher than the previous week and up 18,832 head from the same week last year.
Closing Prices for Lean Hog Futures
Feb 25 Hogs closed at $83.625, a decrease of $0.075.
Apr 25 Hogs closed at $88.625, down $0.275.
May 25 Hogs closed at $92.725, an increase of $0.050.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information provided in this article is intended for informational purposes only. Please refer to the Barchart Disclosure Policy for additional information.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
