Lean Hog Futures Dip as Inventory Reports Indicate Slight Growth
On Tuesday, lean hog futures ended with mixed results. The nearby contracts decreased by 5 to 45 cents, while a slight uptick of 62 cents was noted in certain contracts. The CME Lean Hog Index stood at $84.35 on December 19, reflecting an increase of 14 cents from the day before.
Quarterly Hogs & Pigs Report Reveals Small Increase in Hog Inventory
According to Monday afternoon’s quarterly Hogs & Pigs report, the inventory as of December 1 reached 75.845 million head, which marks a modest 0.51% increase from last year. Breeding hogs also saw a slight rise, totaling 6.004 million head, up by 5,000 head. Market hogs grew by 0.54% to 68.841 million head. During the September to November period, the pig crop was up by 2.03%, amounting to 35.238 million head, with pigs per litter increasing by 2.2% to 11.92. Farrowing intentions for the December to February period were projected to increase by 0.03% to 2.93 million head, while plans for March to May rose by 1.37% to 2.953 million head.
Pork Stocks Hit Historic Lows as Holiday Approaches
NASS Cold Storage data revealed that as of November 30, pork stocks were at 391.08 million pounds. This figure reflects an 8.27% decrease from last month and a 5.91% decline compared to last year, making it the lowest November total since 1997 and the lowest overall since August 2010.
Upcoming Reports and Pricing Updates
Due to the holidays, the USDA’s FOB plant pork cutout report will not be available on Tuesday or Wednesday. The recent cutout value fell by $2.66, settling at $96.62 per cwt.
Feb 25 Hogs closed at $84.375, unchanged.
Apr 25 Hogs closed at $89.175, down $0.450.
May 25 Hogs closed at $93.250, down $0.075.
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 is 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.
