Lean hog futures are trading down $1 to $1.52 across most contracts, reflecting a $2.38 decline in the USDA national base hog price to $99.95 and a $1.59 drop in the FOB plant pork cutout value to $108.75/cwt, primarily driven by a significant fall in belly primal prices. This broad market weakness is further underscored by a 5-cent decrease in the CME Lean Hog Index and increased weekly hog slaughter figures, indicating ongoing downward pressure on prices.
The lean hog market is exhibiting broad-based weakness, with futures contracts experiencing losses between $1.00 and $1.52. This downward pressure is underpinned by deteriorating fundamentals in the physical market. The USDA national base hog price dropped significantly by $2.38 to $99.95, while the CME Lean Hog Index also edged lower by 5 cents to $104.73, confirming the negative trend. On the wholesale side, the FOB plant pork cutout value fell by $1.59 to $108.75 per cwt, a decline driven primarily by a sharp $9.12 collapse in the price of belly primals, suggesting specific weakness in consumer demand for products like bacon. Supply-side data indicates an immediate increase in market-ready animals, as the weekly federally inspected hog slaughter rose to 971,000 head, 6,000 head above the prior week, though it remains 4,225 head below the same week last year.
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strongly negative
Sentiment Score
-0.65
Ticker Sentiment
