Summer Hog Premium Widens on Monday

Pigs feeding from trough in pen

Lean hog futures closed mixed on Monday, as the nearby April and May contracts fell 92 and 10  cents respectively vs the +30c gains in the summer months. The April/June spread had widened to $14.27 at the close. The July contract +$100 for the first time since Feb 2023. USDA’s National Average Base Hog price dropped by 58 cents to $70.91. The CME Lean Hog Index was $79.10 on 2/22, up by another 23 cents. 

China’s Ministry of Ag reported 40.67 million head of sows in inventory closing out January. That was a 1.8% decline from the Dec herd, and 7% below Jan ’23. 

Monthly Cold Storage data from NASS counted 468m lbs of pork in the coolers for Jan. That was up from 427.4m lbs for Dec, but was 9.9% tighter vs Jan ’23. Pork bellies were marked at 64m lbs for Jan, down from the 70m lb supply last year. 

The PM Pork Carcass Cutout Value was 17c lower on Monday to $90.99. USDA estimated the Monday FI hog slaughter at 492k head. That is up from 490k head last week and compared to 483.5k during the same Monday last year. 


Apr 24 Hogs  closed at $86.275, down $0.925,

May 24 Hogs  closed at $90.750, down $0.100

Apr 24 Pork Cutout  closed at $93.300, up $0.075,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.