Lean Hog Futures Rise as Traders Eye Hogs & Pigs Report

Lean hog futures have increased by 70 to 90 cents in the nearby contracts as of Tuesday. The USDA reported the national average base hog negotiated price at $88.23 this morning, reflecting a rise of 20 cents compared to the prior day. The CME Lean Hog Index for March 21, however, saw a marginal decline of 9 cents, landing at $88.79.

Anticipated Hogs & Pigs Report

A quarterly report on Hogs & Pigs is set to be released on Thursday. Traders surveyed by Reuters estimate a total inventory of 75.587 million head as of March 1, marking an increase of 1.2% year-over-year. This is expected to be primarily driven by a marketing number projected to rise by 1.1% to 69.431 million head. Breeding hog numbers are anticipated to see a slight increase of 0.2% to 6.028 million head.

Pork Cutout Prices Rise

The USDA’s Monday afternoon FOB plant pork cutout price rose by $2.99, reaching $100.36 per cwt. The belly cut experienced the most significant increase, surging by $19.39, while the loin remained the only other primal cut to exhibit strength in the midday report. Furthermore, USDA estimated Monday’s federally inspected hog slaughter at 488,000 head. This figure shows an increase of 1,000 head from last week and is 4,650 head higher than the same Monday last year.

Current Lean Hog Futures

April 25 Hogs are priced at $86.575, a rise of $0.875.

May 25 Hogs are at $89.275, increasing by $0.725.

June 25 Hogs are currently valued at $96.575, up by $0.775.

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.