Lean Hog Prices Decline Again Amid Mixed Export Sales
Market Overview and Current Prices
Lean Hog prices continued to drop on Friday, with contracts falling by 32 cents to $1.50. The national average base hog price was reported at $84.67 in the afternoon, down $1.47 from the previous day. Additionally, the CME Lean Hog Index showed a decrease to $89.78 on November 13, down 16 cents from the day before.
Export Sales Trends
Weekly Export Sales data for the week ending November 7 revealed net sales of 19,825 metric tons of pork. Notably, Mexico was the top buyer, purchasing 9,600 metric tons, while Japan imported 3,900 metric tons. However, export shipments declined from the previous week’s 26-week high, totaling 31,087 metric tons, with shipments of 12,600 metric tons to Mexico and 3,900 metric tons to Japan.
Managed Money Positions in Lean Hogs
As of November 12, managed money spec funds in lean hog futures and options added 5,374 contracts to their record net long position, bringing their total to 120,961 contracts.
Pork Cutout Value and Slaughter Estimates
In the USDA’s Friday afternoon report, the FOB plant pork cutout value rose by $3.04 to $97.11 per cwt. The loin and ham primal cuts were the only categories that did not increase, while the belly saw a significant recovery, climbing $18.44 after a decline the previous day. The USDA has estimated the weekly federally inspected hog slaughter at 2.633 million head, which is 28,000 head above last week due to increased Saturday kills, though this figure remains down by 14,405 head compared to the same week last year.
Closing Prices for Lean Hog Futures
December 24 Hogs closed at $79.500, down $0.600.
February 25 Hogs closed at $82.900, down $0.875.
April 25 Hogs closed at $86.900, down $1.225.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. 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.
