Lean hog futures declined on Tuesday, with contracts falling between 15 cents and $1, despite an increase in the negotiated hog price to $109.24. Pork cutout values edged up slightly to $119.89, though loin, picnic, and belly primal cuts decreased. Tuesday's federally inspected hog slaughter was estimated at 480,000 head, bringing the weekly total to 958,000, a slight decrease from the previous week but an increase year-over-year; markets will be closed Thursday for Juneteenth.
Lean hog futures experienced a downturn on Tuesday, with contracts declining by 15 cents to $1.00 across various expiries; for instance, the August 2025 contract closed at $111.800, down $0.875, and the October 2025 contract fell $1.000 to $95.175. This weakness in the futures market contrasts with several positive indicators from the physical market: the USDA's daily direct negotiated hog price surged by $3.12 to $109.24, and the CME Lean Hog Index rose by 89 cents to $103.70 as of June 13. Concurrently, the USDA’s FOB plant pork cutout value increased by 41 cents to $119.89, although specific primal cuts including loin, picnic, and belly were reported lower, suggesting nuanced demand. Federally inspected hog slaughter was estimated at 480,000 head for Tuesday, bringing the weekly total to 958,000 head. While this weekly figure is marginally down by 2,000 head from the previous week, it represents a significant increase of 15,649 head compared to the same week last year, indicating higher processing volumes. Market participants should note the upcoming closure on Thursday for Juneteenth, which will lead to a one-day delay in government reports.
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