Hog Prices Skyrocket in Midweek Trading Session
Lean hog futures climbed on Tuesday, with contracts gaining between 60 and 90 cents, as reported by the Chicago Mercantile Exchange (CME). The national average base hog negotiated price was withheld by the US Department of Agriculture (USDA) due to light trading volumes, though the five-day moving average stood at $95.22. The CME Lean Hog Index rose another 19 cents on May 22, reaching $92.94.
On Tuesday afternoon, the USDA's FOB plant pork cutout value rose $2.27 to $103.73. The butt, picnic, and rib reported lower, while the belly saw a significant increase of $7.48. The USDA estimated hog slaughter for the day at 488,000 head, bringing the weekly total to 490,000—a 10,868-head rise over the same week last year.
The FOB plant pork cutout value averaged $171.59 per hundredweight for most cuts, with hams ranging between $157.00 and $190.00, and picnics at $129.42 per hundredweight. The belly, known for export, was at $155.75 per hundredweight.
The USDA also reported a partial hog count of 7,326 for the day, suggesting consistent slaughter activity. Regular slaughter quantities usually range from 475,000 to 500,000 head, though specific data for late May 2025 was not provided in the sources consulted.
The current hog futures scenario reveals:
- A slight lift in live hog prices, with the national average base hog negotiated price exceeding the five-day average on Wednesday.
- Futures prices closely tracking USDA reports, CME index values, and broader market indicators.
- Strong demand for pork products, as evidenced by the FOB plant pork cutout value.
- Consistent slaughter activity, with steady throughput maintaining a relatively stable supply and demand balance.
In summary, lean hog futures are influenced by rising hog prices, strong demand for pork products, and stable slaughter activity, with recent reports indicating modest upward momentum. Those interested in commodity information and analysis can sign up for the website's expert analysis of various markets, including crude oil and coffee.
In the current hog futures scenario, strong demand for pork products, as indicated by the FOB plant pork cutout value, is playing a significant role. Furthermore, the rising hog prices and stable slaughter activity suggest a modest upward momentum in the business and finance sectors related to the hog industry.
