Hogs Push Higher on Friday

Lean hogs saw gains of 20 to 87 cents across most contracts on Friday, with May down 25 cents and sticking close to the index ahead of next week’s expiration. USDA’s National Average Base Hog negotiated price was down 94 cents in the Friday PM report at $88.41. The CME Lean Hog Index was unchanged on May 8 at $91.28.

USDA’s quarterly production estimates for pork saw an overall decrease to the 2024 number by 26 million lbs to 28.064 billion. Much of that was in Q1, Q3, and Q4, with Q2 seeing an increase.

Weekly Commitment of Traders data showed specs bailing on 20,208 contracts from their net long position to 65,171 contracts as of 5/7.

USDA’s National Pork Carcass Cutout Value was back up $1.34 in the Friday afternoon print at $99.77. The butt ($7.13) led the way higher, with the ham ($3.42) and belly ($1.46) the other two primals reported higher. USDA estimated this week’s federally inspected hog slaughter at 2.39 million head through Saturday. That is 17,000 head below last week but up 28,469 head from the same week last year. 

May 24 Hogs closed at $91.725, down $0.250,

Jun 24 Hogs closed at $98.375, up $0.650

Jul 24 Hogs closed at $101.450, up $0.400,

On the date of publication, Alan Brugler 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.