Pigs Display Mixed Results on Friday
In the world of agricultural commodities, the lean hog market has been experiencing a moderate price increase over the past month, with some recent volatility and mixed market signals.
On August 6, the CME Lean Hog Index climbed 50 cents to $110.10. Other lean hog futures contracts also saw a rise, with a tick to 25 cents on Friday. This upward trend is not limited to the spot market, as futures contracts for October and beyond have also shown gains.
For instance, October lean hog futures were 62 cents higher on the week, trading at $90.675. However, the August lean hog futures contract experienced a slight dip, losing 12 cents to close at $108.900 on Friday.
The USDA's FOB plant pork cutout report from Friday PM was up $1.08 at $117.41 per cwt. This increase in pork cutout values, coupled with the rise in lean hog prices, suggests a robust demand for pork products.
However, the hog slaughter numbers paint a slightly different picture. The USDA estimated hog slaughter at 2.35 million head on Friday, which is 14,000 head above last week but down 29,420 head from the same week last year. This decrease in supply could potentially put a cap on the price increase.
Large managed money speculators have also been active in the market, adding 1,700 contracts to their net long position in lean hog futures and options by the week ending on August 5.
Despite the overall upward trend, the market remains sensitive to fluctuations in cash hog prices, pork cutout values, and export demand. These factors, along with supply conditions and seasonal factors, could potentially pressure prices in the fall.
The current trend for lean hog futures reflects a complex interplay of bullish and bearish forces, making it an interesting market to watch in the coming months.
[1] Source: [Link to the source for the July 15 to August 15, 2025, lean hog price trend] [2] Source: [Link to the source for the August 15 futures prices and gains] [3] Source: [Link to the source for the August 15 deferred month futures prices] [4] Source: [Link to the source for the August contracts' bullish trading and seasonal outlook] [5] Source: [Link to the source for the bearish pressure noted in earlier July reports]
In contrast to the agricultural commodities world, the stock-market realm offers opportunities for financing and investing, armed with potential gains from the stock-market. Given the robust demand for pork products and the bullish sentiment reflected in the lean hog futures trend, some investors might find the stock-market of major food processing and packaging companies an attractively burgeoning investment avenue. Similarly, the activity of large managed money speculators in the lean hog futures market highlights another possible area for those intrigued by the forces shaping the global investing landscape.
