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Lean Hog Futures Show Mixed Performance Amid Market Volatility

Lean hog futures exhibited mixed results this week, indicating market volatility. Prices have seen fluctuations, with recent data signaling changes in slaughter rates and contract adjustments.

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AI Rating:   6

Market Overview: Lean hog futures experienced notable front month strength, closing up by a dime to $1, but April futures saw a drop of 72 cents over the week. The national average base hog price reported by the USDA was $89.05, a decrease of 10 cents from the previous day. The CME Lean Hog Index also noted a slight decline of 3 cents, settling at $89.747 on March 12.

Speculation Activity: Speculators have reduced their net long positions, cutting back 1,909 contracts, resulting in a net long of 55,571 contracts as of March 11. This reduction might reflect uncertainty in the market and could impact future price movements.

Pork Cutout Values: USDA’s FOB plant pork cutout was up 9 cents in the Friday PM report, reaching $97.38 per cwt. It's important to note that while the loin and belly primals reported lower values, the rest of the pork primal cuts showed positive trends, which might stabilize the market going forward. The estimated hog slaughter this week was reported at 2.515 million head, which is an increase compared to last week and the same week last year.

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