Pork Prices Surge as Supplies Hit Historic Lows

On Monday, lean hog futures experienced gains ranging from 7 to 95 cents. This uptick coincides with pork stocks reaching a 14-year low for September. By Monday afternoon, the national average base hog price climbed to $80.95, reflecting an increase of $5.29 from the previous day. The CME Lean Hog Index stood at $85.43 on October 24, which is an increase of 23 cents compared to the day before.

Record Low Pork Supplies

The Cold Storage report revealed that total pork stocks at the end of September totaled 460.141 million pounds. This marks the lowest level for this month since 2010, despite a seasonal increase of 1.07% from August’s figures.

Rising Cutout Values

The USDA reported the FOB plant pork cutout value at $101.95 per cwt in the afternoon release on Monday, a rise of $3.01 from the prior day. Each pork primal saw increases, with the loin up $4.78 and belly prices up $4.68. Additionally, the USDA estimated Monday’s FI hog slaughter at 488,000 head, which matches the previous Monday’s numbers and exceeds last year’s figures by 13,045 head.

Market Summary

Dec 24 Hogs closed at $80.625, an increase of $0.950.

Feb 25 Hogs closed at $84.225, up by $0.800.

Apr 25 Hogs closed at $87.125, rising by $0.475.

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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