Stocks

Headlines

Lean Hog Futures Slip Amid Weather Disruptions

Lean hog futures are down again as the market reacts to weather and slaughter data. The price of hogs continues to face downward pressure despite minor increases in the USDA base price and cutout values.

Date: 
AI Rating:   5

Market Performance Overview: Lean hog futures are experiencing a decline, currently down 95 cents to $2.15 midday. The USDA reported a slight increase in the average base hog negotiated price, which is now $90.05, a rise of 24 cents from the previous day. The CME Lean Hog Index also saw an increase of 4 cents, landing at $89.32 on March 17. This indicates a mixed signal where while spot prices are looking better, the futures are struggling.

Pork Cutout Values: The FOB plant pork cutout from USDA improved by 18 cents to $95.82 per cwt. This uptick suggests underlying value in the commodity despite the futures decrease. Investors might react positively to this resilience, viewing it as a potential stabilizing factor.

Slaughter and Supply Dynamics: The estimated federally inspected hog slaughter numbers are indicative of supply chain shifts. The reported slaughter of 488,000 head on Tuesday brings the week's total to 975,000, down by 1,000 from the previous week but up by 3,472 head from the same time last year. However, current weather disruptions from a blizzard in parts of Iowa are likely to further slow Wednesday’s slaughter, causing concerns about supply and pricing dynamics.

Stocks: