Hog Market News: Prices Retreat Into Quarter End

The hog market entered late December with persistent pressure on both cash and futures pricing. Lean hog futures declined across the board Wednesday, with losses ranging from 5 cents to 35 cents per pound depending on contract month. The national cash hog price fell to $70.19, representing a 19-cent drop from the previous session. Market weakness also reflected in the CME Lean Hog Index, which dipped 19 points to settle at $82.25 on December 29.

Cash Pricing and Wholesale Value Under Pressure

The softness extended to processing markets, where the pork carcass cutout value declined 39 cents per cwt to $93.74. Among the major cuts, only picnic and ham primals managed to post gains, while other product categories faced downward pressure. Meanwhile, federally inspected hog slaughter remained relatively stable, with Wednesday’s kill estimated at 418,000 head and the weekly total reaching 1.36 million head.

Export Sales and International Demand

Recent hog market news from USDA’s delayed export sales report revealed 18,978 metric tons of pork sold for 2025 delivery during the week of December 18, with an additional 25,998 metric tons committed for 2026 shipment. Actual export volumes for that week totaled 34,850 metric tons. These export dynamics continue to influence domestic pricing, though demand patterns suggest ongoing market challenges heading into the new year.

Futures Positioning and Managed Money Activity

Large fund positioning in lean hog futures and options shifted notably, with managed money adding 10,489 contracts to their net long exposure in the week ending December 23. This brought total bullish positioning to 75,325 contracts, indicating institutional investors were testing prices during the recent weakness. February 2026 lean hog futures closed at $85.10, down $0.35, while April 2026 contracts finished at $89.90, down $0.275, and May 2026 settled at $94.00, down just $0.05.