Lean Hog Futures Gain Despite Sluggish Market Conditions

Lean hog futures are opening the week with midday gains ranging from 40 to 70 cents on Monday. In reporting from USDA, the national average base hog negotiated price stood at $87.99 this morning, reflecting a decline of 70 cents. Additionally, the CME Lean Hog Index decreased by another 2 cents from the previous day, registering at $89.90 as of March 5.

Managed Money Shows Long Liquidation in Futures

As of March 4, managed money was experiencing significant long liquidation in lean hog futures and options. The net long fell to a record low of 57,480 contracts, dropping by 33,012 contracts.

Pork Cutout Prices and Slaughter Estimates

USDA’s FOB plant pork cutout, reported this morning, increased by $1.81, reaching $100.17 per cwt. The rib primal was the only exception, declining by $2.40, while other primals showed positive trends. For the previous week, the USDA estimated the Federally inspected hog slaughter at 2.418 million head. This figure is 120,000 head below last week, attributed to transportation challenges, and also 22,322 head behind the same week last year.

Current Lean Hog Prices

April 25 Hogs are at $87.825, reflecting an increase of $0.475.

May 25 Hogs are trading at $91.175, up $0.575.

June 25 Hogs are priced at $98.600, gaining $0.500.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For more details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.