Lean Hog Futures Experience Mixed Performance Amid Key Market Indicators
Market Trends Show Fluctuations as Prices Reflect Recent Developments
Lean hog futures displayed varied results recently, with most contracts declining by 7 to 55 cents, though a few spring contracts edged up by a nickel. The national average base hog negotiated price reached $79.45 on Thursday afternoon, representing an increase of $1.42 from the previous day. Additionally, the CME Lean Hog Index revealed a value of $84.16 as of December 17, which is up 18 cents from the day before.
Looking ahead, the quarterly Hogs & Pigs report is set to be released Monday. A Reuters survey of traders anticipates a 0.1% rise in total hog inventory as of December 1 when compared to last year. Expectations indicate a 0.1% increase in market hogs, while breeding inventory remains stable.
In export news, pork bookings for 2024 shipments reached 11,223 metric tons (MT) during the week of December 12, alongside 5,813 MT committed for 2025. The combined total of 17,036 MT marks a six-week low. Shipments also saw a decline, totaling 31,552 MT, the lowest recorded in three weeks. Notably, 12,800 MT were dispatched to Mexico, while Japan received 3,800 MT.
The USDA announced that the FOB plant pork cutout value decreased by 20 cents to settle at $96.15 per cut weight. While the loin, butt, and picnic primals saw price increases, the rib primal reported a notable drop of $4.40. The USDA’s estimated hog slaughter for Thursday stood at 487,000 head, bringing the weekly total to 1.950 million head—14,000 head higher than last week and an increase of 18,832 head compared to the same week last year.
February 25 Hogs closed at $83.625, down $0.075.
April 25 Hogs closed at $88.625, down $0.275.
May 25 Hogs closed at $92.725, up $0.050.
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 are provided solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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