Lean Hog Futures Fall as Pork Carcass Cutout and Cash Prices Decline
U.S. lean hog futures slid on Tuesday, with active contracts falling between 35 cents and $1. CME Lean Hog Futures (CME:HE1!) dropped 2.87% to 66.08 cents per pound. October futures held steady ahead of their Wednesday expiration, while overall market open interest grew by 2,482 contracts.
Broad weakness in wholesale pork prices and cash markets pulled futures lower. The national base hog price was reported at $70.26 per head, down 76 cents from the previous day, while the pork carcass cutout value dropped $2.29 to $80.68, with only rib and belly cuts showing gains. In addition, the CME Lean Hog Index slipped $1.10 to $76.51.
Traders are monitoring slaughter volumes and market demand as the October contract expires. Federally inspected hog slaughter reached an estimated 496,000 head on Tuesday, bringing the weekly total to 981,000 head. While slaughter levels are down 6,000 head from last week, processing activity remains 8,602 head higher than the same week a year ago.
Key points
- Most lean hog futures contracts dropped between 35 cents and $1 on Tuesday, while October contracts held steady ahead of expiration.
- National base hog cash prices fell 76 cents to $70.26 per head, and the CME Lean Hog Index decreased to $76.51.
- Pork carcass cutout values dropped $2.29 to $80.68, with higher prices reported only in rib and belly primals.
- Estimated Tuesday hog slaughter reached 496,000 head, up 8,602 head compared to the same period last year.
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How we writeDisclaimerQuestions and answers
Why did lean hog futures decline on Tuesday?
Lean hog futures fell due to weakness in cash hog markets and wholesale pork prices, including a $2.29 drop in carcass cutout values and a 76-cent decline in national base hog prices.
What were the latest pork carcass cutout values?
Pork carcass cutout values fell to $80.68, down $2.29, with price increases limited strictly to rib and belly cuts.
How does current hog slaughter compare to last year?
Federally inspected hog slaughter reached 981,000 head for the week, which is 6,000 head below the previous week but 8,602 head higher than the same week last year.