Hedging Against Falling Lean Hogs Prices using Lean Hogs Futures

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

Lean Hogs Futures – Price & Chart

Current and historical prices, chart and data for the CME Lean Hogs Futures #1 (LN1) contract. Contracts use the following methodology to allow long term price comparisons:

  • Front Month
  • Calendar-Weighted Adjusted Prices
  • Roll on First of Month
  • Continuous Contract History
Lean Hogs Futures – Historical Annual Data
Year Average
Settle Price
Year Open Year High Year Low Year Settle Annual
% Change
2020 63.4133 71.5500 71.5500 48.3250 51.4500 -27.97%
2020 72.1556 61.7000 98.9750 52.9750 71.4250 17.14%
2020 66.1188 70.7250 83.7250 48.4000 60.9750 -15.05%
2020 69.9594 63.5000 87.0250 55.7000 71.7750 8.50%
2020 66.3531 59.4250 88.0750 41.1000 66.1500 10.62%
2020 69.5256 81.3000 85.0500 51.8000 59.8000 -26.35%
2020 105.5361 87.0750 132.7900 80.2500 81.2000 -4.95%
2020 89.0450 86.1750 100.9500 77.8750 85.4250 -0.35%
2020 84.6836 85.5250 95.6000 71.3500 85.7250 1.69%
2020 90.2337 77.9750 103.8500 77.3000 84.3000 5.71%
2020 75.9315 65.8500 87.0750 65.2000 79.7500 21.57%
2009 59.7443 63.8500 74.2750 43.9750 65.6000 7.76%
2008 66.5499 57.1700 79.7250 54.0000 60.8750 5.19%
2007 66.6581 59.5000 77.8500 51.1200 57.8700 -6.21%
2006 64.2102 64.6500 76.9200 57.2000 61.7000 -5.47%
2005 68.5450 76.7000 80.8000 58.1500 65.2700 -14.57%
2004 69.2127 55.4200 78.1200 51.7700 76.4000 43.02%
2003 56.9180 51.8200 68.4500 48.7000 53.4200 3.53%
2002 48.9731 56.5700 62.7200 30.0500 51.6000 -9.55%
2001 60.9637 57.1700 73.1700 47.5700 57.0500 0.40%
2000 61.0319 55.9700 77.4700 50.7500 56.8200 4.26%
1999 48.6393 30.7200 60.7000 30.7200 54.5000 66.92%
1998 48.4267 57.5200 62.8000 27.9500 32.6500 -43.41%
1997 73.0166 78.7000 85.4500 57.7000 57.7000 -27.16%
1996 56.5259 47.0700 79.5000 44.8040 79.2200 63.10%
1995 43.8374 39.2500 50.7200 37.1000 48.5700 23.43%
1994 43.3690 45.2200 53.2200 31.6500 39.3500 -13.23%
1993 47.8947 43.6500 56.0200 42.4500 45.3500 3.97%
1992 43.1364 38.9700 48.9500 38.7500 43.6200 10.99%
1991 49.2020 48.0700 58.9200 39.1200 39.3000 -19.58%
1990 54.4233 48.7200 67.0000 46.5500 48.8700 0.35%
1989 45.3110 46.1500 51.1200 38.7500 48.7000 4.69%
1988 44.8668 41.9700 54.7300 37.5500 46.5200 13.27%
1987 48.8574 47.7200 59.2700 40.6500 41.0700 -13.08%
1986 49.5046 46.3000 60.1600 38.0700 47.2500 1.35%
1985 46.0524 53.7500 53.7500 34.8000 46.6200 -12.57%
1984 51.0063 50.3000 57.7500 44.2500 53.3200 4.04%
1983 47.7878 57.3500 59.7000 40.2000 51.2500 -9.69%
1982 56.3194 43.8200 64.7500 43.8200 56.7500 30.91%
1981 48.3873 47.0700 56.8500 38.8200 43.3500 -9.21%
1980 42.2413 43.1700 57.3700 32.0500 47.7500 14.59%
1979 43.2873 49.7200 54.1200 31.4200 41.6700 -15.13%
1978 48.9482 43.3200 56.0500 42.7000 49.1000 13.34%
1977 39.8940 37.5000 47.7000 33.8500 43.3200 15.15%
1976 42.3979 47.8200 53.2700 29.8200 37.6200 -22.38%
1975 49.7545 42.4700 65.0500 36.9700 48.4700 15.68%
1974 38.1620 45.8000 48.1000 24.0200 41.9000 -5.42%
1973 41.5048 33.0200 57.0500 30.0700 44.3000 36.10%
1972 28.0347 25.1000 32.9700 23.4000 32.5500 29.68%
1971 20.2612 16.4200 25.1000 16.0500 25.1000 53.52%
1970 23.1992 27.9500 28.4500 16.1500 16.3500 -40.00%
Latest Futures Contract Prices as of 2020-04-08
Futures Contract Name Settle Volume Open Interest
(Previous Day)
S&P 500 2,735.0000 1,864,489 3,411,904
EURO STOXX 50 2,810.0000 1,283,682 4,603,449
10 Year Treasury 137.8438 1,087,515 3,217,991
Crude Oil 25.0900 783,938 516,106
5 Year Treasury 124.9063 630,205 3,760,284
Eurodollar 99.3700 439,081 1,626,475
2 Year Treasury 110.1125 431,408 2,669,019
NASDAQ 100 8,189.7500 420,264 181,804
Dow Jones 23,246.0000 237,893 53,821
Natural Gas 1.7830 221,817 297,407
30 Year Treasury 178.2813 185,215 1,001,360
Corn 330.0000 131,551 401,740
Euro FX 1.0883 130,074 542,595
Gold 1,684.3000 122,033 348,998
EURO-BTP 139.8800 80,679 343,486
DAX 10,308.0000 71,230 106,142
Japanese Yen 9,208.0000 70,981 116,342
Australian Dollar 0.6237 69,625 127,678
Copper 2.2600 67,085 79,482
Soybeans 854.5000 66,939 230,180
Heating Oil 1.0107 55,673 85,868
Gasoline 0.6780 53,431 100,995
CBOT Wheat 548.2500 51,791 116,017
British Pound 1.2400 50,089 146,145
Canadian Dollar 0.7130 49,918 109,011
Mexican Peso 41,250.0000 49,403 101,118
Soybean Oil 27.1800 45,465 127,592
Silver 15.2050 42,130 68,851
Soybean Meal 292.8000 37,886 105,804
Cattle 86.6750 37,504 124,027
Lean Hogs 51.4500 30,416 79,846
30 Day Fed Funds 99.9150 25,863 262,708
S&P/TSX 60 825.8000 24,094 297,778
Cotton 53.8400 20,960 55,269
CME Wheat 478.0000 20,313 78,265
Coffee 119.8000 19,672 48,930
New Zealand Dollar 0.6019 15,281 40,278
S&P 400 Midcap 1,533.3000 14,876 79,253
Swiss Franc 1.0321 14,010 30,313
US Dollar 100.1700 11,099 27,929
Platinum 733.6000 9,993 48,594
Cocoa 2,379.0000 9,221 22,895
Nikkei 225 19,300.0000 8,766 11,379
CME S&P 500 Index 2,734.9000 4,265 82,545
Milk 11.8300 630 3,435
Palladium 2,095.2000 534 6,726
Rice 14.3150 471 5,685
Oats 275.5000 269 1,770
Lumber 304.1000 198 1,267

We Need Your Support!

Backlinks from other websites and blogs are the lifeblood of our site and are our primary source of new traffic.

If you use our chart images on your site or blog, we ask that you provide attribution via a “dofollow” link back to this page. We have provided a few examples below that you can copy and paste to your site:

Link Preview HTML Code (Click to Copy)
Lean Hogs Futures – Price & Chart
Macrotrends
Source

Your image export is now complete. Please check your download folder.

We Need Your Support!

Backlinks from other websites and blogs are the lifeblood of our site and are our primary source of new traffic.

If you use our datasets on your site or blog, we ask that you provide attribution via a “dofollow” link back to this page. We have provided a few examples below that you can copy and paste to your site:

Link Preview HTML Code (Click to Copy)
Lean Hogs Futures – Price & Chart
Macrotrends
Source

Your data export is now complete. Please check your download folder.

Lean Hogs Futures and Commodities

paul mansfield photography / Getty Images

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

Lean hog futures are critical hedging instruments for the pork industry and because of the volatility of hog prices. Trading in these futures often attract plenty of speculative positions. The lean hog is another term for pork that is traded on the options and futures exchanges of the Chicago Mercantile Exchange (CME).

Contract Specs

Some important characteristics of the lean hog futures contract are as follows:

  • Ticker Symbol: LH
  • Exchange: CME
  • Trading Hours: 10:05 a.m. to 2:00 PM EST
  • Contract Size: 40,000 pounds
  • Contract Months: Feb, Apr, May, Jun, Jul, Aug, Oct, and Dec.
  • Price Quote: price per pound
  • Tick Size: $0.00025 or 2.5 cents per pound = $10.00 (0.00025 x 40,000 lbs).
  • Last Trading Day: The tenth business day of the contract month

Fundamentals

Most hog production occurs in the Midwest. The largest hog producing states are Iowa, North Carolina, Minnesota, and Illinois. The U.S. is the world’s largest pork exporter. Typically, it takes six months to raise a pig from birth to slaughter. Hogs are generally ready for market or slaughter when they reach a weight near 250 pounds.

A market hog with a live weight of 250 pounds will typically yield 88.6 pounds of lean meat (Pork Facts 2001). This lean meat consists of an average of 21% ham, 20.3% loin, 13.9% belly, 3% spareribs, 7.3% Boston butt roast and blade steaks, and 10.3% picnic. The rest goes into jowl, lean trim, fat, and miscellaneous cuts and trimmings (USDA-AMS).

Pork bellies, which used to trade on the CME, are mainly used for bacon and can be frozen and stored for up to a year before processing. The contract was discontinued due to a lack of liquidity.

Seasonality tends to lead hog prices higher between May and July the heart of grilling season in the United States.

Corn and Hogs

The price of corn has a strong correlation with lean hog futures because hogs eat corn. If the price of corn rises substantially, farmers tend to take their hogs to market at lower weights (younger) to avoid high feed costs. At these times, lean hog futures prices tend to drop due to increased supplies.

One can estimate the future amount of hog production by monitoring the Hogs and Pigs Report. When the number of newborn pigs is lower than in previous quarters, it is likely that hog production will be lower in six months later when they are ready for market.

Reports

The Hogs and Pigs Report comes out quarterly. The hogs report presents data on the U.S. pig crop including inventory numbers and weights. The data highlights the current supplies and projected supplies for the future. The CME Lean Hog Index is a two-day weighted average of cash prices.

Developments Over Recent Years

Pork is a staple animal protein around the world. Over recent years, the hog futures market has experienced a great deal of price volatility.

In 2020, lean hog futures rose to all-time highs at over $1.33 per pound when porcine epidemic diarrhea or PED caused the death of over seven million suckling pigs, creating a pork shortage and caused the price of the animal protein to skyrocket. An effective immunization has prevented further outbreaks of PED. In 2020, the price of lean hog futures moved back to the 60 cents per pound level.

In 2020, the Chinese bought the largest U.S. hog processing company Smithfield Foods. While there was some opposition, the sale of the company was eventually approved by Congress, and now China controls an integral part of the U.S. and international pork market.

With over 1.3 billion people to feed, the purchase of Smithfield Foods is another example of China’s appetite for commodity resources around the globe. Pork is a vital animal protein and a staple in the diets of many people.

The world population has increased exponentially, and competition for food will continue to strain the fundamentals of lean hogs and other foods when supply shortages appear. Demographics are likely to cause new highs in many food markets during periods of tight supplies.

LIVESTOCK-Lean hogs sink on big supply, futures’ premium to cash prices

CHICAGO, Jan 9 (Reuters) – U.S. lean hog futures fell on Thursday on ample supplies of hogs and a weak cash market, and as traders remain uncertain about how much additional pork China would buy as part of a Phase 1 trade deal with the United States.

The actively traded Chicago Mercantile Exchange (CME) February contract guided futures lower, pressured by its premium to the CME lean hog index, which is nearly 9 cents below Thursday’s closing price.

Hog traders are looking ahead to next week’s Phase 1 trade agreement signing between the United States and China, the world’s top hog and pork market. U.S. officials say the deal would double Chinese purchases of U.S. farm goods.

U.S. pork exports to China have been record-large in recent months as the country scrambles for supplies after African swine fever killed about half of China’s hog herd.

But investors remain tentative as Chinese imports of U.S. pork have, at times, been below market expectations.

“It is disappointing for the market to weaken on a day when China confirmed next week’s trade deal signing. But the market doesn’t really know what to expect in the way of pork buying by China,” said Doug Houghton, analyst with Brock Associates.

The U.S. Department of Agriculture is due to release updated weekly export sales data on Friday after a winter storm in Washington delayed the report’s release by a day this week.

CME February hogs fell 2.000 cents to 67.025 cents per pound, a near-one-month low but still well above the latest lean hog index of 59.34 cents.

Live cattle futures firmed on seasonally tight supplies and hopes for another week of higher cash market prices, though gains were kept in check by poor beef packer margins. Feeder cattle ended mixed.

Bids and offers at U.S. Plains feedlot markets remain far apart, but traders expect cash sales this week to be at least steady to possibly higher than last week’s $124 per cwt market.

Average beef packer margins on Thursday fell to $3.15 per head, down from $6.35 on Wednesday and $28.75 a week ago, according to livestock marketing advisory service HedgersEdge.com LLC.

CME February live cattle closed 0.375 cent lower at 126.725 cents per pound, while March feeder cattle were 0.100 cent higher at 146.925 cents per pound.

Reporting by Karl Plume in Chicago; Editing by Richard Chang

Bloomberg

We’ve detected unusual activity from your computer network

To continue, please click the box below to let us know you’re not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy.

Need Help?

For inquiries related to this message please contact our support team and provide the reference ID below.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Brokers, Signals and Strategies
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: