Lean hog futures showed mixed results at the end of the week, with contracts ranging from a decrease of 75 cents to an increase of 67 cents. June contracts ended $2.65 lower for the week, according to a May 9 report. The United States Department of Agriculture reported the national base hog price at $93.77 on Friday afternoon, which was up $3.07 from Thursday. The CME Lean Hog Index dropped by 17 cents on May 6 to reach $91.02.
The Commitment of Traders data indicated that managed money net long positions in lean hog futures and options were reduced by a total of 6,483 contracts as of Tuesday, bringing the net long position down to 51,082 contracts.
USDA’s pork carcass cutout value rose by $1.96 to $97.56 per hundredweight in Friday’s PM report, with only the picnic primal reported lower among primals tracked by USDA. Federally inspected hog slaughter for the week was estimated at 2.446 million head—an increase of 4,000 head over last week and up by more than 18,000 compared to this time last year.
May hogs closed at $90.875 per hundredweight (down $0.625), June closed at $98.625 (down $0.750), and July finished at $103.200 (up $0.250).
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The broader impact may be seen in how these market shifts affect producers’ decisions heading into future trading sessions.
