Weakness Grips Hog Futures as Tuesday Session Closes Lower

Hog futures experienced significant downward pressure on Tuesday, with lean hog contracts sliding 67 cents to close at $1.40 per unit. The session reflected broader softness across pork-related commodities and pricing indices.

Market Indicators Paint Bearish Picture

USDA’s official hog pricing data highlighted the extent of Tuesday’s selloff. The national base hog price settled at $75.56, marking a decline of 58 cents from Monday’s close. Meanwhile, the CME Lean Hog Index dropped sharply by 94 cents, finishing at $87.00 on November 14.

The USDA’s afternoon pork carcass cutout value report revealed further weakness, falling $1.62 to reach $95.39 per cwt. Within the cutout breakdown, ham drove losses with a substantial $3.99 decline. The picnic and belly primals bucked the trend, posting gains amid the broader selloff.

Slaughter Volume Shows Year-Over-Year Growth

USDA data for federally inspected hog slaughter on Tuesday totaled 494,000 head. The week-to-date tally reached 988,000 head, representing an increase of 34,000 head compared to the previous week and 8,638 head higher than the corresponding week last year.

Contract Settlements Reflect Pressure

The lean hog contract board showed consistent losses across the curve:

• Dec 25 Hogs closed at $77.900, down $0.675
• Feb 26 Hogs closed at $78.025, down $1.400
• Apr 26 Hogs closed at $81.625, down $1.400

This pattern of consecutive declines across multiple expiration months underscores Tuesday’s broad-based weakness in hog futures pricing.