Lean Hogs Futures Market News and Commentary
Lean hog futures climbed triple digits on Wednesday trading, with April contracts the strongest. Front month futures closed $1.75 to $2.07 higher on Wednesday. The CME Lean Hog Index for 2/17 was down $0.31 to $55.66. USDA’s Livestock and Poultry report updated the Chinese hog production estimates, 2019 was estimated at 14% lower yr/yr with 2020 production expected to fall an additional 23%. Consumption was only estimated 10% lower yr/yr for 2019, with an additional 9.434 MMT (19%) reduction in 2020. USDA’s Pork Carcass Cutout value was down $1 to $64.01 in the afternoon update. The primal cuts were firm and mixed, hams were the biggest movers down by $2.57. USDA’s National Average Base Hog price was $0.19 higher at $49.83 on Wednesday. USDA estimated WTD FI hog slaughter at 1.471 million head. That is 6,000 head below last week but outpaces the same week last year by 65,000 head.
Apr 20 Hogs closed at $67.575, up $2.075,
May 20 Hogs closed at $75.300... Read more