Lean hog futures have experienced sideways and choppy trading for nearly three weeks, with both bulls and bears finding themselves on a level playing field in the near term. The market remains uncertain, as prices fluctuate without a clear direction.
As of March 24, the latest CME lean hog index rose by 11 cents to $88.90, bolstered by recent strength in the pork cutout. The cutout price increased by 18 cents, reaching $97.55 on Tuesday, driven largely by higher prices for bellies.
Strong Pork Demand Provides Support
Tuesday’s fresh pork movement showed a healthy rise, reaching 375.51 loads, indicating strong demand for pork. This uptick in pork sales has helped limit selling pressure in the futures market. The narrowing discount of April futures to the cash hog index has also contributed to reduced selling interest this week.
Despite the sideways trading, lean hog futures bulls are encouraged by the sustained consumer demand for pork, especially as retail beef prices continue to stay at historically high levels. This strong demand for pork at the meat counter offers a positive outlook, even in the face of uncertain market conditions.
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