Pigs Eye Tuesday Action After Mixed Deals on Monday
In a mixed bag for the pig world, Lean hog futures found themselves in a seesaw on Monday. The June contract slid $0.47, while others nickeled and dimed their way up by a penny to a buck. Open interest showed a boost of 9,377 contracts, with June and July dropping 1,477 and 52 respectively.
Let's dive into the deets:
- USDA's National Average Base Hog: No price was reported on Monday, with the 5-day rolling average standing at a cool $98.04.
- CME Lean Hog Index: On May 29, the index rose 71 cents, settling at $94.84.
- FOB Plant Pork Cutout Value: The price dipped by 47 cents on Monday, landing at $106.75.
- Federally Inspected Hog Slaughter: Estimated around 463,000 head, down 18,540 heads from last year.
As for the Lean Hog index, it's been navigating choppy waters, thanks to a sideways trend over the past month. Contributors to this mix-up include improvements in cash hog and pork market fundamentals that keep prices steady. Here are a few key points:
- CME Lean Hog Index: As of early June, the index hovered at $96.34, up 44 cents from the previous report[2].
- Contract Changes: Let's break it down:
- June 2025: The June 2025 contract slumped by 12 cents[2].
- July and August 2025: Both July and August 2025 contracts upticked, with July hitting $105.175 and August reaching $107.675[2].
Additionally, the pork industry is grappling with fluctuations among broader market dynamics. For instance, summer 2025 contracts fare better than those for 2026, hinting at stronger near-term demand or supply constraints[3]. Meanwhile, hog slaughter weights have reared their heads, influencing market dynamics[3]. To sum it up, the lean hog market moves according to both domestic and international factors, including shifts in pork consumption and supply chain conditions[1].
- The Lean Hog Index, being a significant indicator in the pork industry, has been experiencing turbulence due to a sideways trend, influenced by improvements in cash hog and pork market fundamentals.
- In the broader context of the pork industry, summer 2025 contracts demonstrate stronger demand or supply constraints compared to those for 2026, suggesting complexity in both domestic and international market dynamics.
