Lean Hog Futures Recover as Tariff Concerns Ease

Turbulent Times in the Meat Market

Lean hog futures made a notable bounce back, recovering from Monday’s limits with contracts rising between $3 and $3.40. The February futures climbed by 75 cents. On Tuesday afternoon, the national average base hog price was recorded at $85.40. Additionally, the CME Lean Hog Index, noted at $83.77 on January 31, reflected a gain of 29 cents from the previous day.

Currently, the looming tariff worries concerning Mexico and Canada have been temporarily set aside, allowing pork to escape the retaliatory actions from China overnight. This turn of events has provided some respite to hog market participants.

The USDA reported an increase in the FOB plant pork cutout value, which rose by 95 cents in the Tuesday PM update, bringing it to $94.76 per cwt. While the belly primal saw a decrease, all other primals experienced gains ranging from 16 cents to $3.67, with ham leading the way. On Tuesday, federally inspected hog slaughter was estimated at 490,000 head, contributing to a cumulative count of 975,000 head for the week. This figure is 12,000 head higher than last week but down by 4,462 head compared to the same period last year.

Feb 25 Hogs closed at $85.075, up $0.750.

Apr 25 Hogs closed at $89.750, up $3.400.

May 25 Hogs closed at $93.750, up $3.025.

At the time of publication, Austin Schroeder did not hold any positions—directly or indirectly—in any of the securities mentioned in this article. All information and data provided within this article are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.

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