Pork Market Update: Lean Hogs Rise Amid Economic Developments
Lean hog futures finished Thursday with gains ranging from 20 to 60 cents. The national average base hog negotiation price stood at $80.62 on Thursday afternoon, a decrease of $2.87 compared to the previous day. The CME Lean Hog Index, however, recorded a slight increase to $82.59 on January 28, up 48 cents from the day before.
President Trump Moves Forward with Tariffs
In a significant announcement on Thursday afternoon, President Trump confirmed the implementation of a 25% tariff on imports from Mexico and Canada this Saturday. As of now, neither country has publicly declared any retaliatory measures. In 2024, pork exports to Mexico comprised 32.52% of total exports, while shipments to Canada accounted for 8%.
Pork Export Sales Show Varied Trends
Recent export sales data revealed that 33,551 metric tons (MT) of pork were sold in the week ending January 23; this marked a decline from the previous week. Notably, Mexico purchased 11,800 MT, while China acquired 11,200 MT. The total shipments during this week reached 34,122 MT, showing a significant increase of 49.5% compared to the prior week, with Mexico receiving 12,700 MT and the Bahamas 4,700 MT.
Pork Cutout Values and Slaughter Figures
According to the USDA’s afternoon report, the FOB plant pork cutout value dropped by 38 cents to $92.93 per hundredweight. Key cutouts, including rib, belly, and ham, were reported lower. The federally inspected hog slaughter number for Thursday was recorded at 483,000 head, making the week’s total 1.933 million head. This figure represents an increase of 127,000 head from last week, but it is 21,311 head lower than this time last year.
Current Lean Hog Futures
Feb 25 Hogs closed at $84.375, up $0.475.
Apr 25 Hogs closed at $91.925, up $0.600.
May 25 Hogs closed at $95.600, up $0.275.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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