Lean Hog Futures Show Mixed Results Amid Declining Prices

Lean hog futures experienced mixed outcomes on Thursday, with April futures declining by 97 cents, while most other contracts increased by 37 cents to reach $1.50. The USDA reported the national average base hog negotiated price at $85.67 on Thursday afternoon, a decrease of 41 cents compared to the previous day. The CME Lean Hog Index also fell by 16 cents from the prior day, landing at $88.00 on April 8.

Export Sales and Shipment Data

The latest Export Sales data revealed that 23,854 metric tons (MT) of pork were sold for the week ending April 3, marking less than half of the previous week’s sales and a three-week low. Mexico emerged as the largest buyer, purchasing 8,900 MT, followed by Japan with 3,600 MT. Shipment totals for the week reached 30,100 MT, hitting a seven-week low. Notably, 11,700 MT were shipped to Mexico, with Japan receiving 4,500 MT of the total.

Pork Cutout Value and Slaughter Estimates

The USDA reported a decline in the afternoon pork cutout value, which fell by another $1.06 to $89.70 per hundredweight (cwt). While the butt and ham primals showed slight increases, the overall trend was negative. The estimated federally inspected hog slaughter stood at 488,000 head on Thursday, contributing to a week-to-date total of 1.951 million head. This figure reflects an increase of 34,000 head from last week and is 39,301 head higher than the same week last year.

Market Close

As the market closed on Thursday, prices for the upcoming contracts were as follows:

• April 25 Hogs closed at $86.000, down $0.975.
• May 25 Hogs closed at $86.500, up $0.375.
• June 25 Hogs closed at $93.175, up $1.475.

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 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.