Lean Hog Futures and Market Insights

Lean Hog Futures Performance

On Wednesday, lean hog futures showed a positive trend, with most contracts experiencing gains ranging from 22 to 65 cents. This uptick is further supported by a rise in preliminary open interest, which increased by 5,066 contracts. The national average negotiated price for base hogs, as reported by the USDA, was $107.33 in the afternoon, reflecting a rise of $1.49 compared to the previous day. Additionally, the CME Lean Hog Index reported an increase of 92 cents as of June 9, bringing it to $99.97.

Pork Cutout Value

The pork cutout value reported by the USDA’s FOB plant for Wednesday’s afternoon session saw a rise of $2.20, resulting in a total of $113.08. Among the primal cuts, the loin and rib categories were the only ones that showed a decrease. This data indicates a vibrant market for pork products, despite slight fluctuations in specific cuts.

Slaughter Statistics

In terms of supply, federally inspected hog slaughter numbers for Wednesday were estimated at 480,000 head. This brings the cumulative total for the week to 1.440 million head, marking an increase of 17,000 from the previous week and a notable rise of 25,960 compared to the same week last year. Such figures are essential for assessing market trends and consumer demand for pork.

Market Prices

As for specific market prices, the June 25 hogs closed at $103.375, reflecting a modest increase of $0.225. Meanwhile, July 25 hogs ended at $108.850, up $0.650, and August 25 hogs closed at $110.200, marking an increase of $0.400. These variations highlight the dynamic nature of the hog market and its response to multiple factors.

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