Lean Hog Futures Rise While Pork Cutout Values Climb
On Friday, lean hog futures wrapped up the trading session with gains from 75 cents to $2.30. The February contract achieved a modest gain of five cents over the week. The national average base hog price declined to $76.95, falling by $2.50 compared to Thursday. Meanwhile, the CME Lean Hog Index reported a slight increase, settling at $84.21 on December 18, up five cents from the prior day.
Upcoming Report Could Shape Market Expectations
The quarterly Hogs & Pigs report is scheduled for release on Monday, assuming government operations proceed without interruption. According to a Reuters survey, all hog inventory as of December 1 is expected to rise by 0.1% compared to last year. Market hogs are also projected to see a 0.1% increase, while breeding inventory is anticipated to remain steady.
Traders Adjust Positions Ahead of Report
Data from the Commitment of Traders shows a decrease in long positions during the week leading up to December 17, as net long contracts dropped by 8,451 to a total of 122,308 contracts.
Pork Cutout Values and Slaughter Rates Improve
On Friday afternoon, USDA reported a rise in the FOB plant pork cutout value, which increased by $1.13 to reach $97.28 per cwt. Only the loin and ham primals showed price declines, while the belly surged significantly, climbing $13.51. Additionally, USDA estimated the weekly federally inspected hog slaughter at 2.581 million head, up by 21,000 from the previous week and up 152,448 from the same point last year.
Feb 25 Hogs closed at $85.925, up $2.300
Apr 25 Hogs closed at $90.525, up $1.900
May 25 Hogs closed at $94.350, up $1.625
At the time of publication, Austin Schroeder did not hold positions in any securities mentioned in this article. All information and data are provided for informational purposes. For more details, please refer to the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
