Market Update: Lean Hog Futures and Pork Prices
Lean Hog Futures Show Positive Movement
On Wednesday, lean hog futures experienced increases ranging from 50 cents to $1.30. As of midday Thursday, they displayed an additional rise of $0.77 to $1.30 per hundredweight (cwt). Notably, preliminary open interest decreased by 4,490 contracts on Wednesday. This decline suggests that recent buying activity was primarily due to short covering among traders.
USDA’s National Base Hog Price
The U.S. Department of Agriculture (USDA) reported that the national base hog price this morning had a weighted average of $109.60, reflecting a decrease of $2.21 from the previous day. The Western Corn Belt (WCB) negotiated average stood at $109.59, while the Iowa/Minnesota price was slightly lower at $108.58. Additionally, the CME Lean Hog Index saw a minor uptick, increasing by a penny to reach $107.20 as of July 15.
Pork Cutout Value Increasing
The USDA’s foreign and domestic (FOB) plant pork cutout value registered a rise of $1.32, bringing it to $114.82 per cwt. Among various pork products, the price for pork belly, commonly known as raw bacon, surged by an additional $3.01 per cwt, with most primal cuts—excluding ribs—also recording gains.
Weekly Hog Slaughter Data
According to USDA estimates, the slaughter of hogs reached 477,000 head on Wednesday, leading to a cumulative weekly total of 1.408 million head. This figure indicates a decrease of 10,000 head compared to last week and 26,663 head lower than the same week in the previous year.
Key Export Sales Numbers
Recent USDA reports highlighted that weekly pork export sales amounted to 17,100 metric tons (MT) for the week ending July 10. This figure represents a significant decline of approximately 30% from the preceding week. Mexico and Japan emerged as the primary buyers during this period. Total export shipments for the week accounted for 26,500 MT, with Mexico and China receiving the largest volumes.
Futures Prices Overview
Looking into the futures market for lean hogs, the prices are as follows:
- August 25 Hogs: $105.200, showing an increase of $0.775.
- October 25 Hogs: $90.025, marking a rise of $1.325.
- December 25 Hogs: Priced at $81.700, with an increase of $1.250.
This ongoing trend in the lean hog market highlights the fluctuations and dynamics that traders and stakeholders closely monitor. For anyone involved in pork production or trading, understanding these movements is crucial for making informed decisions.
