Upsurge in Prices

Witnessing a robust performance, nearby lean hog prices soared by 12 to 62 cents across the front months, with June showcasing an impressive $1.90 weekly gain. This rally, just ahead of the quarterly Hogs and Pigs report, stands as a testament to the resilience of the hog market in the face of uncertainty.

Anticipation and Expectations

Anticipation is high as USDA readies itself to release the quarterly Hogs & Pigs report. Traders are bracing for shrinkage in the Kept for breeding category, albeit offset by expectations of increased productivity. With pigs per litter estimates up by a noteworthy 3.4% from the previous year, the market is poised for continued growth.

Slaughter and Cutout Value

Meanwhile, the USDA reported a drop in the National Pork Carcass Cutout Value to $94.06, further emphasizing the balancing act of supply and demand in the hog market. Despite this, the estimated FI hog slaughter for the week remained steady, indicating a consistent flow of hogs into the market.

Apr 24 Hogs  closed at $86.100, up $0.525,

May 24 Hogs  closed at $92.400, up $0.650

Apr 24 Pork Cutout  closed at $95.500, up $1.550,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.