Lean Hog Futures Climb Amid Mixed Pork Market Signals
Lean Hog Prices Show Modest Gains Despite Declines in Average Prices
Lean hog futures saw an increase of 5 to 20 cents on Thursday. However, the national average base hog negotiated price dropped to $79.02 in the afternoon, marking a decrease of $2.37 from the previous day. The CME Lean Hog Index reported a value of $83.61 on December 10, reflecting a slight uptick of 28 cents from the day before.
USDA Reports Lower Pork Export Sales, Yet Shipment Volumes Rise
The USDA’s Export Sales report indicated total pork bookings of 22,460 MT for 2024 and an additional 4,574 MT for 2025 during the week of December 5. This brought the total sales to 27,034 MT, representing a three-week low and a significant 44.2% drop from the same week last year. Notably, Mexico purchased 9,400 MT, while Japan acquired 5,600 MT. In terms of shipments, the volume reached 33,755 MT, the highest in five weeks, with Mexico receiving 14,700 MT and South Korea 3,900 MT.
Pork Values Decline as Slaughter Numbers Climb
On Thursday afternoon, the USDA’s FOB plant pork cutout value decreased by 56 cents to $92.31 per cwt. Key cuts such as picnic, rib, and belly also fell, with the belly experiencing the largest drop of $9.39. Additionally, USDA estimated the Thursday slaughter of hogs at 478,000 head, bringing the weekly total to 1.942 million head. This figure is up 5,000 head from last week and 25,654 head higher than the same week last year.
Recent Futures Prices Reflect Market Movements
For the contracts expiring on various dates, prices closed as follows: Dec 24 Hogs at $83.550, up $0.050; Feb 25 Hogs at $84.475, up $0.100; and Apr 25 Hogs at $88.450, up $0.200.
On the date of publication, Austin Schroeder had no direct or indirect positions in any of the securities mentioned in this article. All information and data in this article are intended 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 the views of Nasdaq, Inc.
