About Lean Hogs
Lean hog futures track the US pork market. Prices are strongly seasonal, usually firming into summer grilling season, and export demand from Mexico and Asia plays a major role.
What moves the lean hogs price
- Seasonal supply and demand patterns.
- Export demand and animal-disease outbreaks abroad.
- Feed costs from corn and soybean meal.
- The quarterly USDA Hogs and Pigs report.
Shorter cycles than cattle
Hog production responds faster than cattle: sows produce litters several times a year and pigs reach market weight in about six months. Supply can therefore expand or shrink within a year, and prices swing accordingly. The quarterly USDA Hogs and Pigs report on inventories and farrowing intentions often moves the market sharply.
Seasonality, exports and disease
Hog prices typically rise into early summer, when grilling demand peaks and supply is seasonally lower, and soften in autumn as more hogs reach market. Exports to Mexico, China, Japan and South Korea take a large share of US pork, so trade policy and the dollar matter. Animal disease is a major risk: African swine fever devastated China's herd in 2018 and 2019, reshaping global pork trade. Feed costs from corn and soybean meal drive producer margins.
Contract specifications
| Benchmark future | CME Lean Hogs (HE) |
|---|---|
| Contract size | 40,000 pounds |
| Minimum tick | $0.00025 per pound = $10 per contract |
| Contract months | February, April, May, June, July, August, October, December |
| Settlement | Cash-settled against the CME Lean Hog Index |
| Key reports | USDA Hogs and Pigs (quarterly), pork cutout (daily) |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
CME livestock futures trade Monday to Friday, about 8:30 am to 1:05 pm US Central Time.
Contract basics
CME Lean Hogs (HE) cover 40,000 pounds and are cash-settled against the CME Lean Hog Index.
Quote unit
US cents per pound. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Lean Hogs FAQ
What moves the price of lean hogs?
Seasonal supply and demand patterns. Export demand and animal-disease outbreaks abroad. Feed costs from corn and soybean meal. The quarterly USDA Hogs and Pigs report.
When does lean hogs trade?
CME livestock futures trade Monday to Friday, about 8:30 am to 1:05 pm US Central Time.
What is the standard lean hogs contract?
CME Lean Hogs (HE) cover 40,000 pounds and are cash-settled against the CME Lean Hog Index.
What does 'lean hogs' mean?
Prices are based on the carcass (lean) weight rather than live weight, matching how packers buy hogs.
When are hog prices seasonally highest?
Typically in late spring and early summer, when demand peaks and market supply is seasonally smaller.