Lean hog futures kicked off the week on a higher note, extending last week’s rally to new contract highs. April lean hogs traded more than 50 cents higher on Monday, topping $97 per cwt before erasing some gains. Summer June hogs saw similar gains to $109.

The hog market has had a bullish run since hitting multi-month lows in November. Technically, futures are overbought and could see some cooling back to their previous highs from September. Commitment of traders data suggests that the market could extend gains further even if the market retraces.

To reiterate previous analysis following the bearish September Hogs and Pigs report, U.S. pork supplies remain tight. Pork cold storage inventories totaled 391 million pounds at the end of December, down 2 percent year-over-year. Inventories remained at the lowest level in about two decades amid slightly lower production and stable demand.

U.S. hog slaughter totaled 11.5 million head in December, up 8 percent year-over-year. Year-to-date slaughter reached 128.2 million head, falling 1.1 percent from last year. Live hog weights were 2 pounds higher than a year ago at 293 pounds. Higher slaughter weights helped offset lower pig slaughter, with total production in 2025 sitting less than a percent lower than a year ago.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.