Lean Hog Futures Show Encouraging Gains Amid Market Adjustments

Hog Prices and Futures Make Notable Moves

Lean hog futures recorded nearby gains of 55 to 62 cents on Monday. The national average base hog negotiated price was reported at $79.14 on Monday afternoon, marking an increase of 14 cents from the previous day. Meanwhile, the CME Lean Hog Index stood at $80.43 on January 9, reflecting a decrease of 16 cents from the day before.

Shifts in Managed Money Positions

Data from the Commitment of Traders was delayed until Monday, revealing that managed money reduced their net long by another 11,751 contracts during the week ending January 7. This change primarily resulted from long liquidation, leading to a net long position that decreased to 97,190 contracts.

USDA Reports Decline in Pork Cutout Value

The USDA reported a decrease in its FOB plant pork cutout value, which fell $1.16 in Monday’s afternoon report to $90.20 per cwt. Prices for the loin, butt, and belly primals all saw reductions. In addition, federally inspected hog slaughter reached 486,000 head on Monday. This number is up 39,000 head from the previous week and shows an increase of 105,427 head compared to the same Monday last year.

Current Hogs Futures Prices

February 25 Hogs closed at $83.175, up $0.625.

April 25 Hogs closed at $89.300, also up $0.625.

May 25 Hogs closed at $94.075, gaining $0.550.

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 those of the author and do not necessarily reflect those of Nasdaq, Inc.