Midday Update: Lean Hogs Experience Mixed Trading Amidst Price Fluctuations

Lean hogs showed varied trading activity at midday, with April contracts dropping by a quarter, while other contracts increased slightly, some reaching up to 70 cents. On Friday, the USDA reported the national average base hog negotiated price at $90.25, reflecting an increase of 88 cents from the previous day. The CME Lean Hog Index continues its upward trend, rising by 24 cents on February 19 to reach $91.22.

According to Export Sales data, a total of 25,628 metric tons (MT) were sold in the week concluding on February 13, marking an increase from last week’s low figures. Mexico emerged as the top buyer, purchasing 5,700 MT, followed by Japan, which acquired 4,100 MT. However, the shipment volume totaled 29,954 MT, marking a four-week low. The primary destination was again Mexico, receiving 12,200 MT, while South Korea and Japan received 4,000 MT each.

The USDA reported an increase in the FOB plant pork cutout value, which rose by $5.16 on Friday morning to $99.19 per cwt. The belly products have been significant contributors to this upward movement, increasing by $18.17. The USDA’s estimated federally inspected hog slaughter stood at 473,000 head on Thursday, bringing the weekly total to 1.930 million head. This figure was 29,000 head less than last week and 25,954 head down from the same week a year ago.

Apr 25 Hogs are priced at $88.275, down $0.250.

May 25 Hogs are at $92.475, up $0.025.

Jun 25 Hogs are at $100.975, up $0.675.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data within this article are provided solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.

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