Lean hog futures are declining, with midday losses ranging from 37 to 65 cents, while the national average base hog price decreased by $4.15 to $92.45. Weekly export sales reached a 7-week high of 37,391 MT, driven by demand from Mexico and China, and actual shipments also increased to a 5-week high of 28,547 MT, primarily to Mexico and Japan; however, the pork cutout value saw a slight increase, and hog slaughter estimates are up both from the previous week and year.
Lean hog futures are experiencing a downturn, with midday losses ranging from 37 to 65 cents across various contracts; for instance, the June 25 Hogs contract declined by $0.650 to $98.875. This futures market weakness is consistent with a significant $4.15 drop in USDA’s national average base hog negotiated price to $92.45. In contrast to these declines, demand indicators show strength: weekly export sales for pork surged to a 7-week high of 37,391 metric tons, predominantly to Mexico (14,400 MT) and China (7,800 MT), while actual shipments reached a 5-week high of 28,547 MT. The USDA’s FOB plant pork cutout value also saw a modest increase of 57 cents to $100.61, although this was largely due to a $6.39 rise in the belly primal, as butt, rib, and ham primals were reported lower. Supply-side data indicates increased production, with federally inspected hog slaughter estimated at 1.449 million head for the week, an increase of 16,000 head from the previous week and 12,760 head above the same week last year. The CME Lean Hog Index, a lagging indicator, did show a slight increase of 49 cents to $92.34 as of May 20, reflecting recent market conditions prior to the latest price slips.
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