Lean Hog Futures Experience Mixed Performance Amid Trade Tariffs

Lean hog futures are showing gains of 25 to 40 cents in most nearby contracts, although April futures have decreased by 87 cents. As of Wednesday, the USDA’s national average base hog negotiated price was not reported, leaving the 5-day rolling average at $87.88. Additionally, the CME Lean Hog Index ticked down 3 cents from the prior day, now standing at $88.16 as of April 7.

In trade news, the newly implemented 50% tariffs on China have driven the total tariff rate on all Chinese goods to 104%. In retaliation, China announced a 50% increase on U.S. goods, raising its total tariff to 84%, set to take effect on Thursday.

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The USDA’s pork cutout value reported on Wednesday afternoon has declined by $2.17, bringing the value to $91.28 per cwt. The picnic cut was the only primal reporting an increase. On Tuesday, USDA estimated the federally inspected hog slaughter at 488,000 head, resulting in a week-to-date total of 976,000 head. This figure reflects an increase of 23,000 head from the previous week and is 36,150 head above the same week last year.

April 25 Hogs: $86.950, down $0.875

May 25 Hogs: $84.975, up $0.375

June 25 Hogs: $90.025, up $0.250

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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