Lean Hog Futures Show Mixed Performance Amid Speculative Retreat

Lean hog futures demonstrated front-month strength on Friday, with contracts rising by up to a dime to close at $1. However, April contracts decreased by 72 cents over the week. The USDA reported the national average base hog negotiated price at $89.05 in the afternoon, representing a decline of 10 cents from the previous day. The CME Lean Hog Index fell 3 cents from the day before, landing at $89.747 as of March 12.

As of March 11, lean hog futures and options speculators reduced their net long position by another 1,909 contracts, bringing the total net long down to 55,571 contracts by Tuesday.

Commodity Bulletin

The USDA’s FOB plant pork cutout price increased by 9 cents in the Friday PM report, reaching $97.38 per cwt. While the loin and belly primals reported lower prices, other cuts exhibited gains. Furthermore, USDA estimated that this week’s federally inspected hog slaughter was 2.515 million head, exceeding last week’s figures by 97,000 head and larger by 59,009 head compared to the same week in the previous year.

April, May, and June Futures

April 25 Hogs closed at $86.625, an increase of $1.000.

May 25 Hogs settled at $89.200, up by $0.400.

June 25 Hogs finished at $96.300, rising $0.100.

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.

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