FreeTheAI

Lean Hog Futures Fall as Pork Cutout and Base Hog Prices Drop

BearishLow impact
HE1!USX 68.03 −0.51%

Lean Hog Futures (CME:HE1!) closed lower on Tuesday as wholesale pork prices and cash hog market benchmarks continued to slip. December 2026 futures dropped 35 cents to settle at $68.025, while February 2027 contracts fell 70 cents to $69.60. The October 2026 contract, scheduled to expire on Wednesday, remained unchanged at $75.60.

Lower cash prices and softer product values drove the decline. The United States Department of Agriculture reported the national base hog price at $70.26 on Tuesday afternoon, down 76 cents from Monday. Additionally, the wholesale pork carcass cutout value dropped $2.29 to $80.68, with rib and belly cuts being the only primals to record gains. The Chicago Mercantile Exchange Lean Hog Index also decreased $1.10 to $76.51 for October 9.

Slaughter volume figures showed moderate supply moving through processing channels. Federally inspected hog slaughter for Tuesday was estimated at 496,000 head, bringing the weekly total to 981,000 head. This weekly total was 6,000 head below the previous week's level, but 8,602 head higher than the corresponding period a year ago. Traders will monitor whether cash demand stabilizes following the October contract expiration.

Key points

  • December 2026 lean hog futures dropped 35 cents to $68.025, while February 2027 contracts fell 70 cents to $69.60.
  • The national base hog price fell 76 cents to $70.26 per hundredweight on Tuesday afternoon.
  • Wholesale pork carcass cutout values fell $2.29 to $80.68, though rib and belly primals moved higher.
  • Weekly slaughter reached 981,000 head, down 6,000 from last week but up 8,602 head from 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 writeDisclaimer

Questions and answers

Why did lean hog futures drop on Tuesday?

Lean hog futures fell due to weakness in cash markets, highlighted by lower wholesale pork carcass cutout values and a drop in national base hog prices.

What were the USDA base hog and pork cutout prices on Tuesday?

The USDA reported the national base hog price at $70.26, down 76 cents from the prior day, while the pork carcass cutout value declined $2.29 to $80.68.

How does current hog slaughter compare to previous periods?

Daily slaughter reached an estimated 496,000 head on Tuesday, bringing the weekly total to 981,000 head. That is 6,000 head lower than last week but 8,602 head higher than the same week last year.