US Hog Prices Drop 72 Cents on Weak Demand

Lean hog futures lost 72 cents per pound across most contracts on Friday. The October contract declined 77 cents for the week. The USDA national base hog price stood at $85.38, down $1.48 from the previous day. The CME Lean Hog Index dropped 57 cents to $88.22 on September 9. These figures indicate sustained downward pressure in the pork sector.

Weekly export sales data showed 27,435 metric tons of pork sold for 2026 delivery. This volume represents a three-week low. Shipments totaled 30,187 metric tons, marking a four-week high. Managed money reduced net short positions by 4,767 contracts. The net short position now stands at -23,556 contracts as of Tuesday.

Cutout Values Slide Across Most Primals

USDA reported a pork carcass cutout value of $89.80 on Friday. This figure decreased by $2.01 from the prior report. The belly primal fell sharply by $9.67. Only the rib and ham primals reported higher values. This divergence highlights specific weakness in certain meat sections.

USDA estimated federally inspected hog slaughter at 2.269 million head this week. This number is significantly lower than the same non-holiday week last year. Reduced slaughter volumes may influence supply dynamics in the coming weeks. Market participants are monitoring these changes closely.

Futures Contracts Close at Lower Levels

October 2026 hogs closed at $81.525, down $1.625. December 2026 hogs closed at $72.700, down $1.650. February 2027 hogs closed at $75.200, down $1.625. All three contracts showed substantial losses on the session. The broad decline reflects consistent selling pressure across the curve.

Market Data From GN Markets

Source data from GN markets/commodities (en-US) confirms these price movements. The consistent drop in cash and futures prices signals a softening demand environment. Traders are adjusting positions to reflect these new market realities. The sector faces continued challenges from weak export sales and lower cutout values.