Pig outlook: ??Lean hog futures hit 5.5 month high driven by technical bulls

Oct 21, 2024

December lean hog futures this week pushed to a 5.5-month high as the bulls remain in firm technical command. This comes despite the CME cash hog index posting a new seasonal low. The latest CME lean hog index is down 23 cents to $83.85 as of Oct. 15. Hog traders this the fall and early winter pig crop and pork production is not going to be as large as originally expected. That has led traders to tightening up December futures to the cash index, implying that the seasonal weakness this year will not be as severe as seen in the cash market the past two years.

Latest USDA and other news regarding the global pork industry

U.S. Labor Dept. probes underage worker claims at Tyson plants in Arkansas

The U.S. Department of Labor is conducting an ongoing investigation into claims of underage workers at two Tyson Foods plants in Arkansas. This comes after court documents unsealed in the Western District of Arkansas revealed accusations of child labor violations at Tyson processing facilities.

Specific allegations. A teacher at a school near the Rogers, Arkansas plant reported that a 14-year-old student discussed working at the Tyson facility for the summer. For the Green Forest, Arkansas plant, a mother overheard children between 11-13 years old discussing working night shifts from 11 PM to 7-8 AM. Investigators observed "multiple individuals whose appearance and body language indicated were potentially minor employees below the age of 16" at both locations.

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Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.