Lean Hog Futures Rally as Prices See Slight Uptick

Negotiated Prices and Pork Cutout Values Show Mixed Results

On Friday, lean hog futures experienced a resurgence with contracts rising between $1.15 to $1.40, coinciding with the expiration of December contracts. As of Friday morning, the national average base hog negotiated price fell to $78.36, down 72 cents from the previous day. Meanwhile, the CME Lean Hog Index was reported at $83.92 on December 11, which is an increase of 31 cents compared to the previous day.

USDA data indicated an improvement in the FOB plant pork cutout value, which climbed by $3.86 to reach $96.17 per cwt on Friday morning. Notably, the rib cut was the only one to report a decline, while the belly cut noted a significant increase of $12.37, and the picnic cut rose by $8.19. The USDA also estimated the slaughter of hogs to be 478,000 on Thursday, pushing the total for the week to 1.942 million. This figure is up by 5,000 heads from last week and represents an increase of 25,654 heads compared to the same week last year.

Dec 24 Hogs are priced at $83.725, reflecting an increase of $0.175.

Feb 25 Hogs stand at $85.625, a rise of $1.150.

Apr 25 Hogs are valued at $89.825, climbing by $1.375.

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.

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