Lean Hogs Experience Mixed Results as Prices Adjust
Market Overview and Pricing Trends
Lean hog futures ended with a varied performance at Thursday’s close. Contracts shifted with prices ranging from 57 cents lower to 22 cents higher. The national average base hog price fell to $82.70 on Thursday afternoon, declining by $2.10 from the previous day. Meanwhile, the CME Lean Hog Index reached $85.78 on October 29, marking a slight increase of 5 cents.
Pork Exports Show Improvement
Pork export sales reached 44,838 metric tons (MT) during the week of October 24, the highest level in three weeks. Mexico emerged as the largest buyer, importing 17,700 MT, followed by China, which purchased 10,400 MT. Total export shipments for the week were documented at 32,268 MT, just above last week’s volume. Notably, 11,400 MT was shipped to Mexico and 4,100 MT headed to Japan.
USDA Reports Increase in Pork Cutout Value
According to USDA’s latest report, the FOB plant pork cutout value climbed $1.54 from the prior day, reaching $103.15 per cwt. All pork primals saw price increases, with the picnic contributing the most, rising by $3.95. The USDA estimated Thursday’s federally inspected hog slaughter at 486,000 head, bringing the cumulative count for the week to 1.950 million head. This figure is slightly lower by 2,000 head compared to last week, yet it exceeds the same week’s count from last year by 25,453 head.
Recent Contract Prices
For the most recent contracts, the closing prices were as follows: Dec 24 Hogs at $83.800, down $0.575; Feb 25 Hogs at $85.200, down $0.500; and Apr 25 Hogs at $88.100, up $0.050.
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 details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
