As the week commences, midday lean hog futures are revving up with triple digit gains, electrifying investors with a surge of excitement. The front month contracts are charging ahead, riding a wave of bullish momentum, although they are hovering approximately 60 cents below the session’s peak. USDA’s National Average Base Hog price, after marking a $1 downturn on Friday afternoon, is standing firm at $79.30. Similarly, the CME Lean Hog Index for 3/19 stands 39 cents higher at $83.21.
Amidst this spirited market activity, pork cutout futures maintained their stance over the weekend, unfazed by Friday’s stagnation and a 72-cent dip over the course of the week. An upward trend is visible in the USDA’s National Pork Carcass Cutout Value, which saw an impressive $2.29 climb to $94.37, fueled by the recovery of rib primals. Ribs, in particular, exhibited a remarkable surge, skyrocketing by $11.42 to $177.26.
Highlighting the industry’s robust performance, USDA’s latest report revealed a pork output of 545.8 million lbs for the week, marking a 15 million lb increase from the previous week and a 1.7% rise compared to the corresponding period last year. Hog slaughter figures were equally impressive, reaching 2.53 million head for the week, reflecting a 2.7% and 2.4% increase, respectively. Year-to-date totals paint a picture of growth, with 6.556 billion lbs and 30.287 million head processed, compared to 6.524 billion lbs and 30.04 million head last year.
Apr 24 Hogs closed at $84.800, up $0.225,
May 24 Hogs closed at $91.800, up $1.400
Apr 24 Pork Cutout closed at $93.950, up $1.525,
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.
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