Lean Hog Futures Surge
Lean hog futures experienced a notable uptick on Friday, with gains ranging from 2% to 2.8%, propelling front months to reach new record highs. Remarkably, June futures are holding firm at an impressive $18.60 premium to the spot board price. As the week drew to a close, nearby futures surged by over $6, marking a substantial increase in value over the past week. One could almost hear the echoes of historic milestones being set as new contract highs were established amid this bullish run.
Market Insights and Analysis
The USDA’s National Average Base Hog price took a slight hit on Friday afternoon, dropping by 53 cents to $86.70. However, the 4/2 CME Lean Hog Index painted a different picture, strengthening by 23 cents to $85.15. Meanwhile, the US pork industry saw a mixed bag in terms of performance, with the National Pork Carcass Cutout Value dipping by 40 cents to $97.75. Notably, bellies led the decline with a significant $14.24 drop, although this was somewhat offset by an $8.36 increase for hams.
Production and Slaughter Data
Despite market fluctuations, the USDA reported a steady increase in pork output, with this week’s production reaching 521.2 million lbs. This figure reflects a marginal uptick of 0.7% from the previous week and a solid 1.3% increase compared to the same period last year. Additionally, FI hog slaughter for the week stood at 2.3421 million head, slightly lower than the previous week’s 2.404 million head and the 2.37 million head processed during the equivalent week last year.
Apr 24 Hogs closed at $89.325, up $0.975,
May 24 Hogs closed at $97.550, up $2.475
Apr 24 Pork Cutout closed at $99.950, up $2.150,
On the date of publication, Alan Brugler 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.
