Lean Hog Futures Rise Amid Strong Trading Activity

Market Update: Lean Hogs Exhibit Notable Gains

Lean hog futures increased slightly to $2.125 on Friday, marking a $1.77 rise since last week. The national average base hog negotiated price was reported at $79.00 Friday afternoon, which is a 15-cent increase from the previous day. As of January 8, the CME Lean Hog Index stood at $80.59, down 46 cents from the day before.

Pork Exports Show Strong Demand

Pork export sales for the week ending January 2 reached 31,038 metric tons (MT), with shipments totaling 25,474 MT. Mexico was the largest destination, receiving 8,300 MT, followed by Japan with 3,000 MT.

Pork Cutout Value and Slaughter Numbers

The USDA’s FOB plant pork cutout value rose by 88 cents to $91.36 per hundredweight (cwt) in the Friday afternoon report. While the loin, picnic, and rib primals saw price decreases, other cuts, especially the belly, experienced gains. This week’s federally inspected hog slaughter reached 2.551 million head by Saturday, an increase of 285,000 head compared to last week and 379,871 head more than this time last year.

February Hogs Close Higher

Feb 25 Hogs closed at $82.550, up $0.775.
Apr 25 Hogs closed at $88.675, up $1.325.
May 25 Hogs closed at $93.525, up $1.500.

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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.