Lean Hog Futures Rise Despite Decline in National Average Prices
Market Insights and Trading Activity
Lean hog futures closed the Friday session with contracts up between 17 to 97 cents, with February futures gaining 42 cents over the week. The national average base hog negotiated price stood at $80.13 on Friday afternoon, a decrease of $5.21 from the previous day, though trading volume was light. The CME Lean Hog Index was reported at $83.93 on December 4, down 14 cents from the day before.
Record Highs for Managed Money Traders
Managed money speculators in lean hog futures and options added 8,746 contracts, extending their record net long position as of December 3. Their total exposure reached a noteworthy 133,507 contracts by Tuesday.
Year-to-Date Pork Shipment Performance
According to Export Sales data, year-to-date pork shipments totaled 1.536 million tons, reflecting a 6% increase compared to the same period last year. When accounting for unshipped sales, total commitments rose to 1.706 million tons, which is 1.4% higher than the prior year.
Pork Cutout Value and Slaughter Rates
On Friday afternoon, the USDA reported an increase in the FOB plant pork cutout value, which rose by $2.52 to reach $91.16 per hundredweight. The rib cut was lower, but the belly price increased significantly, up $6.38. The USDA estimated the weekly federally inspected hog slaughter at 2.602 million head, down 65,752 head from the same week last year, primarily due to a lower Saturday kill.
Latest Lean Hog Futures Prices
December 24 Hogs concluded at $83.300, an increase of $0.875.
February 25 Hogs closed at $87.325, up $0.975.
April 25 Hogs ended at $91.850, marking a rise of $0.700.
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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
