Lean Hog Futures Make a Comeback After Monday’s Setback

Contracts see gains, while market conditions remain steady.

Lean hog futures are bouncing back after significant losses on Monday, with contracts rising between $1.02 and $3.47 by midday today. The trading limits have been increased to $6 for today. However, the national average base hog negotiated price went unreported on Tuesday morning due to low trading volume, with the 5-day rolling average standing at $83.92. The CME Lean Hog Index reported a value of $83.77 on January 31, reflecting an increase of 29 cents from the previous day.

Meanwhile, the tariff threats on Mexico and Canada have taken a back seat, providing some relief to the pork industry, which was notably absent from the recent Chinese retaliatory actions overnight.

According to the USDA, the FOB plant pork cutout value rose by 78 cents in the Tuesday AM report, reaching $94.59 per cwt. The belly was the only primal cut reported to decrease. The federally inspected hog slaughter for Monday was estimated at 491,000 head, surpassing the previous Monday’s count by 8,000 head and increasing by 2,772 head compared to the same time last year.

Feb 25 Hogs: $85.350, up $1.025

Apr 25 Hogs: $89.825, up $3.475

May 25 Hogs: $93.775, up $3.050

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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