Lean Hogs Show Mixed Results as Prices Fluctuate
Market Summary: Near-term Losses vs. Back Months Gains
Lean hogs wrapped up Friday’s trading session with nearby contracts losing between 50 to 85 cents, while some later contracts gained. April contracts dropped $4.925 over the week. The national average base hog price reported by the USDA on Friday afternoon was $90.08, which reflects an increase of 64 cents from the previous day. The CME Lean Hog Index continues its upward trend, rising 24 cents to reach $91.22 as of February 19.
Traders Shift Positions with Increased Hedge Fund Interest
Recent Commitment of Traders data revealed that as of February 18, a total of 11,522 contracts were added to the spec fund net long position in lean hog futures and options. This raised the total net position to 114,148 contracts, marking the most substantial level since the Christmas period.
Export Sales Show Slight Recovery, Mexico Leads Purchases
According to Friday’s Export Sales report, pork sales reached 25,628 MT for the week ending February 13, showing a rebound from the previous week’s figures. Mexico emerged as the top purchaser with 5,700 MT, followed closely by Japan, which bought 4,100 MT. However, total pork shipments fell to 29,954 MT, reaching a four-week low, with Mexico again leading at 12,200 MT, along with 4,000 MT sent to South Korea and Japan.
Pork Cutout Value Rises Following Steady Slaughter Levels
The USDA reported an increase in the Friday afternoon FOB plant pork cutout value, which rose by $3.04 to $97.07 per cwt. All primals experienced an uptick, particularly the belly cut, which rose by $7.89. The estimated federally inspected hog slaughter for the week stood at 2.536 million head, slightly surpassing last week’s number by 7,000 head, though it was down 40,946 head compared to the same week last year.
Apr 25 Hogs closed at $87.675, down $0.850
May 25 Hogs closed at $91.950, down $0.500
Jun 25 Hogs closed at $100.625, up $0.325
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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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