HomeMost PopularLean Hogs Charge Ahead Towards the Weekend

Lean Hogs Charge Ahead Towards the Weekend

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Positive Momentum in Lean Hogs Market

Lean hogs made significant strides with gains ranging from 60 cents to $2.27 in the nearbys and deferred contracts, showcasing positive momentum in the market. USDA’s National Average Base Hog negotiated price saw a modest decrease of $1.29 in the Friday afternoon report, settling at $88.49. At the same time, the CME Lean Hog Index made a noteworthy advancement of an additional dime to reach $91.46 as of April 17.

Insights from China’s Hog Industry

China’s ministry of agriculture revealed that the country’s sow herd stood at 39.92 million head as of March 31, marking a 7.3% decrease from the previous year. Additionally, the overall hog herd inventory in China witnessed a decline of 5.2% from the previous year, totaling 408.5 million head. These insights from China’s hog industry provide crucial context for the global market dynamics.

Speculative Trends in Lean Hog Contracts

According to CFTC data, lean hog spec funds reduced their large net long in hogs by 6,086 contracts as of Tuesday, leaving them with a total of 86,645 contracts. This shift in speculative trends adds an intriguing layer to the current landscape of lean hog trading.

Market Performance and Pork Production Statistics

USDA’s National Pork Carcass Cutout Value climbed by 13 points in the Friday PM report, reaching $100.09. Notably, the picnic and belly primals experienced slight decreases. Furthermore, USDA’s estimates showcased a rise in this week’s federally inspected hog slaughter, with a total of 2.487 million head processed through Saturday. This figure represents a 2,000 head increase from the previous week and a significant 34,388 head rise compared to the same period last year. Pork production for the week also indicated an uptick of 0.3% from the previous week, culminating in a total of 536 million lbs.

Closing Figures for May, June, and July 2024 Hogs

As the week drew to a close, the market witnessed robust performances in the hog sector. May 2024 Hogs closed at $96.225, marking an increase of $1.500. Similarly, Jun 2024 Hogs concluded at $104.825, reflecting a gain of $2.125. Additionally, Jul 2024 Hogs exhibited strong growth, closing at $106.475, up by $2.125.

Disclosure: The author, Alan Brugler, has not held any direct or indirect positions in the securities mentioned in this article. All information provided is for informational purposes only. For additional details, refer to the Barchart Disclosure Policy here.

Please note that the views and opinions expressed in this article belong solely to the author and may not necessarily align with those of Nasdaq, Inc.

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