Lean Hog Futures Face Midday Losses Amid Mixed USDA Reports

Lean hog futures show midday losses despite a slight increase in USDA's national average price. The USDA also projects a decline in pork production for 2025. Investors should closely monitor these trends as they could impact the relevant sectors.

Date: 12-03-2025

AI Rating: 5

Market Overview: Lean hog futures are experiencing losses of $0.30 to $1.40, indicating a weak market sentiment. Even though there is an uptick in the USDA's national average base hog price, overall futures are still on a downward trend.

Earnings Indicators: While specific financial metrics like Earnings Per Share (EPS), Revenue Growth, or Net Income are not detailed in this report, the changes in hog prices can reflect the market's perception of profitability within the livestock industry.

Production Estimates: The USDA’s WASDE report indicated projected pork production for 2025 will be 28.425 billion pounds, down 105 million pounds from the previous estimate due to lower quarter 1 output. This decline suggests that less supply could potentially stabilize or increase prices in the long term if demand remains steady.

Pork Cutout Pricing: The reported FOB plant pork cutout price was up by 80 cents to $99.02 per cwt, signaling stronger pricing in certain cuts, although some primals (loin and butt) are reported lower. This mixed trend in pricing may influence buyer behavior and overall market sentiments towards pork production and sales.

Slaughter Rates: The estimated slaughter rate was 487,000 head, 2,000 head above last Monday and significantly larger than the same week last year. This increase can often reflect strong demand in the face of lower production estimates.

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