Hog Futures Face Midweek Pressure as Market Quotes Decline

Lean hog futures recorded significant midweek pressure across most trading contracts, with price quotes sliding between $1.00 and $1.67 per cwt. Some deferred months saw lighter losses, declining as little as 42 cents. Trading activity remained steady as open interest expanded by 525 contracts, reflecting continued market participation despite the downward pressure on quotes.

Futures Contracts Show Widespread Weakness Across Trading Quotes

The midweek decline in hog futures quotes was broad-based throughout the contract spectrum. Most active contracts experienced losses in the $1 to $1.67 range, while some longer-dated deferred positions held up slightly better with declines limited to 42 cents or less. The opening interest growth of 525 contracts suggests traders were either hedging their positions or building new exposure despite the prevailing pressure on quotes.

USDA Market Indicators and Price Benchmarks

On Wednesday afternoon, USDA’s national base hog price was reported at $86.28, up $1.46 from Tuesday’s close—a modest gain that contrasted with the broader pressure affecting futures quotes. Meanwhile, the CME Lean Hog Index climbed another 42 cents on January 26, reaching $84.43. However, the USDA’s pork carcass cutout value from the Wednesday PM report declined 64 cents to $95.05 per cwt, providing headwinds to the overall market quotes despite strength in the picnic and rib primals.

Weekly Slaughter Activity and Year-over-Year Trends

Federally inspected hog slaughter for Wednesday reached 493,000 head, bringing the cumulative weekly total to 1.391 million head. This figure represents 5,000 head below the previous week’s total and 55,922 head below the comparable week from the prior year. The reduced slaughter volumes contributed to the market pressure as supply considerations weighed on futures quotes heading into the remainder of the week.

Closing Quotes and Contract Performance

February 26 hog futures closed at $87.950, down $1.100 from the previous session. April 26 contracts ended at $95.150, declining $1.675 for the session. May 26 quotes settled at $98.850, reflecting weakness of $1.575. These broad-based declines across the near-term and deferred curves highlighted the sustained midweek pressure affecting the entire lean hog complex.

The convergence of softer market sentiment, declining carcass values, and reduced slaughter momentum created a challenging environment for price quotes across all major lean hog contracts during this midweek trading session.