Pork Market Update: Lean Hog Futures Decline Amid Mixed News
Lean hog futures experienced limit losses on Thursday, closing near the $4 limit with a decrease of $3.25 to $3.95 by the end of the trading session. The USDA reported the national average base hog negotiated price at $89.49 on Thursday afternoon, which reflects a decline of 37 cents from the prior day. Meanwhile, the CME Lean Hog Index increased by 2 cents from the previous day, sitting at $89.49 on February 25.
In political news, President Trump clarified earlier comments regarding the start date of tariffs on Mexico and Canada, asserting he misspoke. The implementation date remains set for next Tuesday, alongside the reciprocal tariffs scheduled for April.
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Export bookings for pork during the week ending February 20 reached 32,155 metric tons (MT), marking a three-week high. Mexico was the leading buyer, purchasing 13,300 MT, while Japan accounted for 3,500 MT. The total shipments amounted to 34,133 MT, making it the second largest in this marketing year. Mexico was again the primary destination with 12,900 MT, accompanied by 4,400 MT shipped to Japan.
The USDA reported that the FOB plant pork cutout value was $100.96 per cwt on Thursday afternoon, with a decrease of $4.30. Specifically, the loin and picnic cuts fell, while bellies surged, increasing by $26.64. The USDA also reported that the federally inspected hog slaughter on Thursday estimated at 489,000 head brings the week-to-date total to 1.958 million head. This figure is higher by 28,000 head compared to last week and 2,100 head above the same week last year.
Apr 25 Hogs closed at $84.375, down $3.925.
May 25 Hogs closed at $88.750, down $3.700.
Jun 25 Hogs closed at $97.600, down $3.275.
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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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