Pork Futures Eye Momentum Into Week's Final Session

Lean hog futures demonstrated significant strength on Thursday, with nearby contracts advancing $1.90 to $2.30 by market close. Contract openings rose by 7,146 positions, reflecting growing trader interest. The CME Lean Hog Index declined 11 cents to $80.39 on January 13, while USDA’s national base hog price remained unreported due to thin Thursday afternoon volume.

Export Demand Supports Market

USDA export sales data underscored solid pork demand globally. Bookings reached 26,826 metric tons during the week ending January 8, with Mexico leading purchases at 9,200 MT and Japan securing 5,200 MT. Actual shipments totaled 40,672 MT, heavily concentrated toward Mexico at 21,000 MT of the total flow.

Production and Pricing Dynamics

The USDA pork carcass cutout value climbed $2.31 to $93.60 per cwt in Thursday’s afternoon assessment. Picnic and rib primals were among the few segments posting declines. Federally inspected hog slaughter hit 492,000 head on Thursday, bringing the weekly total to 1.973 million head—marking a notable 46,901 head increase compared to the same period last year.

Contract Settlement Signals

The nearby contract months reflected the week’s bullish undertone. Feb 26 Hogs closed at $87.800, up $2.100, while Apr 26 Hogs settled at $95.000, gaining $2.300. May 26 Hogs finished at $98.475, posting a $1.900 advance. Markets will remain closed Monday for the Martin Luther King Jr. Day holiday, with traders positioning ahead of Friday’s session.