Triple Digit Drops for Lean Hogs

The lean hog futures market dropped triple digits after initially gapping up from NASS Hogs and Pigs numbers. The April contract traded in a $4.20 range before going home $2.77 in the red. The other 2022 contracts rallied to new LoC highs, before also dropping by 1% to 2.9% for the close. Front month lean hog futures are trading 92 to 12 cents lower through July, though are up 55 to $1.40 in the deferreds. The National Average Base Hog price from the PM data was $2.61 weaker at $102.32. CME’s Lean Hog Index was $103.66 on 3/29, up by another dime.  

Weekly Export Sales data from FAS showed 27,647 MT of pork was sold during the week that ended 3/24. Mexico was the top buyer, with over half of the total. USDA also had 30,625 MT shipped during the week, a 5% increase from last week but a 24% decrease from the same week last year. Through 3/24, 350,502 MT of pork has been exported in 2022 – via weekly data. 

Pork cutout futures went home $1.32 to $3 in the red as well. USDA’s National Pork Carcass Cutout Value for Thursday afternoon was up by $4 to $107.72. Butts were down by $8.05, while hams increased by $19.88. USDA estimates the week’s FI hog slaughter at 1.914 million head for the week through Thursday. That is up 12k from last week, but down 41k yr/yr.  

Apr 22 Hogs  closed at $101.750, down $2.775,

May 22 Hogs  closed at $113.575, down $3.425

Apr 22 Pork Cutout  closed at $108.750, down $0.525,