Lean hogs were in freefall mode last Friday, as contracts were down $3.45 to the $4 limit, with April steady and held up by the index. Monday will have expanded limits of $6. The national average base hog negotiated price from USDA was down 27 cents from the day prior at $87.40 in the Friday PM report. CME’s Lean Hog Index from April 2 was down 8 cents from the previous day at $88.72.
Outside of China’s retaliatory tariff of 34% on all US goods there were no major new announcements over the weekend.
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Weekly Commitment of Traders data from CFTC showed a total of 3,963 contracts added back to the net long in lean hog futures and options as of April 1. That took their net long to 55,326 contracts.
The USDA pork cutout value from Friday afternoon was up 96 cents after the midday surge, at $95.77 per cwt. The loin, butt, and rib primals were reported lower, with the belly leading the charge higher, up $7.73. USDA estimated last week’s Federally inspected hog slaughter at 2.52 million head. That is up 40,000 head from last week and 111,777 head above the same week last year.
Apr 25 Hogs closed at $87.375, unch,,
May 25 Hogs closed at $85.125, down $3.450
Jun 25 Hogs closed at $91.550, down $4.000,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
