Lean Hog Futures Experience Midday Gains Amid Low Pork Stocks

Market Update: Hog Prices and Pork Supply at Historical Lows

Lean hog futures have risen by 85 cents to reach $1.57 in Tuesday’s midday trading. The national average base hog negotiated price sits at $87.69 according to the morning report. The CME Lean Hog Index on November 22 recorded a value of $87.01, reflecting a decrease of 55 cents from the previous day.

A significant factor influencing prices is the recent pork stock report. The USDA’s National Agricultural Statistics Service (NASS) revealed that pork stocks hit a 20-year low at the end of October, totaling 426.03 million lbs. This represents a 7.06% decline from the previous month and a 2.71% drop compared to last year’s figures.

The USDA’s Free on Board (FOB) plant pork cutout value also declined, dropping $1.54 to $91.79 per cwt on Tuesday morning. While the picnic and ham primals saw some price increases, most other categories reported lower values. An estimated 489,000 head of hogs were slaughtered on Monday, matching last week’s figure and exceeding the same week last year by 12,831 head.

Dec 24 Hogs  are trading at $82.825, reflecting an increase of $0.850.

Feb 25 Hogs  have risen to $87.500, up $1.575.

Apr 25 Hogs  are priced at $91.100, gaining $0.975.

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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