Hog Futures Surge as Pork Cutout Value Rises

Lean hog futures showed an increase, with contracts rising by 40 to 95 cents by midday on Wednesday. The national average base hog negotiated price was not available due to low trading volume; however, the 5-day rolling average currently sits at $79.03. The CME Lean Hog Index reported a value of $83.98 on December 16, reflecting a 14-cent increase from the day prior.

USDA Reports Upward Trends in Pork Cutout Value

In Wednesday’s morning report, the USDA announced that the FOB plant pork cutout value increased by 90 cents, now at $95.67 per cwt. Notably, both the loin and butt primals saw a slight decline. Meanwhile, the USDA estimated the hog slaughter for Tuesday at 488,000 head, bringing the weekly total to 975,000 head. This figure is down by 2,000 head compared to last week but shows an increase of 7,192 head from the same week last year.

Current Lean Hog Futures Prices

Feb 25 Hogs: $83.600, up $0.400

Apr 25 Hogs: $88.825, up $0.775

May 25 Hogs: $92.650, up $0.950

On the date of publication, Austin Schroeder did not have any positions in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, 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.