Lean Hog Futures Show Modest Gains Amid Mixed Pricing

On Thursday, lean hog futures experienced stability, with prices climbing up to 20 cents in the front months. However, the national average base hog negotiated price fell to $86.23, a decrease of 48 cents from the previous day. The CME Lean Hog Index also saw a rise to $84.60 on February 4, marking an increase of 52 cents from the day before.

Strong Export Numbers Highlight Demand

Pork export sales reached 50,671 metric tons in the week ending January 30, marking the highest level so far in 2023 and representing a 51% increase from the week prior. Mexico led the purchasing with 21,000 metric tons, followed by South Korea at 7,200 metric tons. Export shipments also totaled 37,762 metric tons, a significant rise, up 10.7% from the previous week, with Mexico receiving the largest share of 13,900 metric tons and Japan taking 5,500 metric tons.

USDA Reports Paint a Mixed Picture

The USDA reported a pork cutout value that was $1.81 higher at $95.64 per hundredweight in the Thursday PM report. Notably, prices for picnic and rib primals saw a decline. The estimated federally inspected hog slaughter for Thursday stood at 481,000 head, bringing the week-to-date total to 1.945 million head. This figure is 12,000 head more than last week but down 14,244 head compared to the same week last year.

Current Prices for Futures Contracts

Feb 25 Hogs closed at $86.650, unchanged.
Apr 25 Hogs closed at $91.750, up $0.200.
May 25 Hogs closed at $95.825, up $0.100.

On the publication date, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information herein is for informational purposes only. For additional details, please view the Barchart Disclosure Policy here.

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