Lean Hog Futures Show Gains Amid Market Adjustments

Lean hog futures wrapped up Friday’s session with prices rising between 70 cents and $1.10. Notably, the April contract climbed $3.67 for the week, recovering much of the recent downturn. Meanwhile, the USDA reported the national average base hog negotiated price at $88.89 on Friday afternoon, marking a $1.88 decline. Additionally, the CME Lean Hog Index fell by 2 cents from the previous day, settling at $90.18 on March 5.

As of March 4, managed funds exhibited significant long liquidation in lean hog futures and options, decreasing the net long position by a record 33,012 contracts, leaving it at 57,480 contracts.

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USDA’s FOB plant pork cutout price increased by $1.87 to $98.36 per cwt on Friday afternoon, with all primal cuts reporting higher prices. This week, the USDA estimated the Federally inspected hog slaughter at 2.418 million head, 120,000 head lower than last week due to transportation challenges, and 22,322 head behind the same week last year.

April 25 Hogs closed at $87.350, up $0.700.

May 25 Hogs closed at $90.600, up $0.925.

June 25 Hogs closed at $98.100, up $1.075.

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

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