Lean Hog Futures Record Wednesday Strength as Market Indicators Shift

Lean hog futures wrapped up Wednesday’s session with impressive advances, with gains ranging from 5 to 90 cents across various contracts. The overall market activity showed a contraction, with preliminary open interest declining by 1,552 contracts, suggesting some position consolidation among traders.

Market Pricing and USDA Data

The USDA’s national base hog price climbed to $72.09 Wednesday afternoon, marking a 76-cent increase from Tuesday’s close. Meanwhile, the CME Lean Hog Index slipped 6 cents on December 1, settling at $81.61. The pork carcass cutout value from USDA’s Wednesday PM report demonstrated resilience, gaining 20 cents to reach $94.02 per hundredweight. Among the primal cuts, only the belly section posted gains, indicating selective strength in the complex.

Slaughter Data and Weekly Comparisons

Federally inspected hog slaughter on Wednesday totaled 492,000 head. Through the week, cumulative slaughter reached 1.463 million head—down 11,000 head compared to the previous week but ahead of the corresponding week last year by 2,924 head. This mixed picture reflects the ongoing balance between supply dynamics and market demand.

Contract-Specific Performance

The futures landscape showed broad-based strength across the curve:

• Dec 25 Hogs finished at $80.550, up $0.050
• Feb 26 Hogs wrapped at $81.000, advancing $0.825
• Apr 26 Hogs closed at $84.725, gaining $0.900

The escalating gains moving further out the curve suggest growing confidence in medium-term hog market fundamentals and seasonal pricing patterns.