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Pork Producers Eye Wednesday Deals Following Weaker Market Performance on Tuesday

Hog futures experienced a 12 to 42 cent decrease on Tuesday, with preliminary open interest witnessing a 932 contract increase. According to USDA's report, the national base hog price reached $112.41 on Tuesday afternoon - an increase of $4.16. The CME Lean Hog Index registered a 23 cent decrease.

Pigs Aim for Trade on Wednesday Following a Weaker Tuesday Performance
Pigs Aim for Trade on Wednesday Following a Weaker Tuesday Performance

Pork Producers Eye Wednesday Deals Following Weaker Market Performance on Tuesday

The lean hog futures market is currently experiencing a period of price consolidation, with limited buying and selling pressure, as reported by industry analysts. This trend reflects mixed fundamentals in the market, as recent price changes show some short-term declines in cash and futures prices, but bulls are still attempting to maintain an uptrend in the August futures contract, suggesting cautious optimism.

Key details from the past week include:

  • On August 25, 2025, October lean hog futures fell 12.5 cents to $109.55, with the market consolidating amid mild weakening in cash hog and pork fundamentals, while strong gains in cattle futures provided some support [3].
  • The CME Lean Hog Index dropped from $110.02 on August 8 to about $108.57 by August 19, reflecting lower cash market prices [1][4].
  • The USDA national base hog price decreased to around $108.35-$108.99 recently, with the projected cash index also dropping 49 cents to $108.57 as of August 19 [1][4].
  • Export sales and shipments have shown some decline relative to previous weeks and averages, which can pressure near-term prices, though exports remain significant to key markets such as Mexico, South Korea, and Japan [1][3][4].
  • Futures contracts for later months (October 2025, December 2025, February 2026) have seen modest gains: October at $89.95 (down slightly), December up about 42.5 cents, and February up about 62.5 cents recently, indicating mixed sentiment over the medium term [2][4].
  • Traders are also watching beef market strength (cattle futures rising on tight supply and strong beef demand) which has an indirect influence on hog futures and their relative competitiveness [5].

In summary, the lean hog futures market in August 2025 is experiencing consolidation after recent declines, with prices and cash indices showing downward adjustments but bulls still holding some price support. Export data weakness and cash market softness weigh on near-term prices, while later futures months reflect cautious optimism amid broader livestock market dynamics [1][2][3][4].

It is important to note that the information and data presented in this article are solely for informational purposes. No relevant information was extracted from the advertisement sections, and Austin Schroeder did not have positions in any of the securities mentioned in the article. For more information, please refer to our Disclosure Policy.

Market data as of August 25, 2025: - August 25 Hogs closed at $109.550, down $0.125. - Lean hog futures closed Tuesday with 12 to 42 cent losses. - That was 55,000 head above last week but down 6,183 head from the same week last year. - USDA's FOB plant pork cutout report from Tuesday afternoon was back down $4.39 at $114.70 per cwt. - The rib was reported higher, with the rest seen lower, led by the picnic, down $7.83. - USDA's national base hog price was reported at $112.41 on Tuesday afternoon, up $4.16. - The CME Lean Hog Index was down 23 cents at $110.02 on August 8.

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