Lean Hog Futures Fall as Cash Hog Prices and Pork Cutout Values Decline
Lean Hog Futures (CME:HE1!) closed lower on Wednesday as cash livestock prices and wholesale pork values pulled back. December contracts fell $1.95 to close at $66.075, while February contracts dropped $1.75 to $67.850. Most active settlement months saw losses ranging from 10 cents to $1.95, although select deferred contracts gained 5 to 12 cents, and the expiring October contract slipped 5 cents to end at $75.55.
The price pressure follows weakness in physical cash markets and cutout values. The national base hog price fell $1.12 to $69.14, while the pork carcass cutout value decreased $1.23 to $79.45. Wholesale price cuts were lower across picnics, ribs, and bellies, with belly values experiencing a steep $11 decline. At the same time, federally inspected slaughter reached 497,000 head for the day, bringing the weekly slaughter total to 1.478 million head. While weekly slaughter ran 4,000 head below the prior week, it exceeded the same week last year by 11,730 head.
Traders will watch whether steady supply levels continue to weigh on physical cash bids and meat packer margins. Key factors for upcoming sessions include daily slaughter rates, pork cutout stability, and buyer demand across wholesale pork cuts.
Key points
- December lean hog futures fell $1.95 to $66.075, while February futures dropped $1.75 to $67.850.
- The national base hog price decreased $1.12 to $69.14 per hundredweight.
- Pork carcass cutout value dropped $1.23 to $79.45, led by an $11 decline in belly prices.
- Weekly slaughter reached 1.478 million head, up 11,730 head from the same period last year.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why did lean hog futures drop?
Futures dropped alongside declines in cash market prices and wholesale pork values, with pork carcass cutout falling $1.23 to $79.45 and pork bellies dropping $11.
What is the current national base price for hogs?
The national base hog price fell $1.12 on Wednesday afternoon to $69.14.
How does current hog slaughter compare to last year?
Weekly federally inspected hog slaughter stood at 1.478 million head, which is 11,730 head higher than the same week last year despite being down 4,000 head from the prior week.