Hog Market Quotes Face Midweek Pressure Amid Price Decline

Lean hog futures experienced significant downward pressure across the trading week, with most contract quotes sliding between $1.00 and $1.67 lower. Some deferred positions showed relative stability, posting losses as minimal as 42 cents. Trading activity remained robust, with open interest climbing 525 contracts higher, indicating sustained market participation despite the bearish sentiment affecting most quotes in the complex.

Price Quotes Reflect Sustained Market Selling Pressure

USDA’s official national base hog price settled at $86.28 on Wednesday afternoon, representing a day-over-day increase of $1.46—a rare bright spot amid otherwise subdued market conditions. However, this modest recovery failed to reverse the broader pressure affecting futures quotes. The CME Lean Hog Index, which tracks real-time market sentiment, posted a 42-cent advance to $84.43 on January 26, though this gain paled in comparison to the larger declines captured in the deferred contract quotes trading deeper in the curve.

USDA and CME Indicators Signal Underlying Weakness

The pork carcass cutout value from Wednesday’s post-meridiem report declined 64 cents to $95.05 per hundredweight, underscoring the downward pressure permeating through the supply chain. Among the primal cuts, only the picnic and rib sections posted gains, while other primals surrendered value. This mixed performance in individual primal quotes suggests selective demand strength rather than broad-based market confidence.

Supply Data Supports Downward Pressure on Quotes

USDA-monitored federally inspected hog slaughter reached 493,000 head on Wednesday, bringing the weekly aggregate to 1.391 million head. This represented a deficit of 5,000 head compared to the previous week and 55,922 head below the corresponding week one year prior. The year-over-year decline signals tighter supply conditions; however, current market quotes remain under pressure, suggesting demand considerations are outweighing tightening supply fundamentals at this juncture.

The Feb 26 Hogs contract quotes closed at $87.95, down $1.10, while Apr 26 Hogs quotes retreated to $95.15, off $1.675. May 26 Hogs quotes settled at $98.85, posting a loss of $1.575. Across the board, futures quotes in the hog complex traded with consistent downside bias throughout the midweek session, reflecting the broader pressure that dominated market sentiment.

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