December lean hog futures continue to face downward pressure, struggling to recover from recent lows. The market saw limited short covering and bargain hunting this week, but overall buying interest remains weak due to falling cash hog prices and a declining CME lean hog index. The latest CME lean hog index dropped $0.29 to $59.99, with Thursday’s projected index price down another $0.21 to $59.78. The national direct five-day rolling average cash hog price stands at $40.87.
The USDA noon pork report showed a slight improvement in cutout value, up $0.23 to $69.75, driven by gains in butts. Movement at midday was decent at 196.88 loads. Despite some early signs that the CME lean hog index may be nearing a bottom, the downward trend in December lean hog futures persists. The next upside objective for bulls is to close prices above $60.00, while bears aim to push prices below the contract low of $53.175.
First resistance is seen at $57.10 and then at $58.00, with first support at today’s low of $55.00 and then at $54.00. The USDA’s monthly supply and demand report lowered 2026 beef production forecasts but raised pork production by 35 million pounds due to larger-than-expected fourth-quarter supplies. The barrow and gilt price was lowered 50 cents to $63.29, with the fourth quarter at $53. Pork exports were cut for 2026 and 2027 due to weaker shipments and global competition.
Looking ahead, December lean hog futures are expected to trade between $55.00 and $58.00 with a sideways-lower bias. December soybean meal futures are projected to range from $310.00 to $330.00, also with a sideways-lower bias, while December corn futures are expected to trade between $4.30 and $5.60 with a similar bias.