Lean Hog Futures Plummet Amid Market Turmoil and Tariffs
Lean hog futures faced significant declines on Friday, dropping $3.45 to the maximum limit of $4. Meanwhile, the April contract remained steady, supported by the index. Starting Monday, expanded limits will increase to $6. According to the USDA’s Friday PM report, the national average base hog negotiated price fell by 27 cents from the previous day to $87.40. Additionally, CME’s Lean Hog Index as of April 2 decreased by 8 cents, landing at $88.72.
The agricultural market reacted sharply as China announced a 34% retaliatory tariff on all US goods overnight, responding to President Trump’s reciprocal tariffs.
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According to the weekly Commitment of Traders data from CFTC, 3.9603 contracts were added back to the net long in lean hog futures and options as of April 1. This raised the total net long position to 55,326 contracts.
In the afternoon, the USDA reported that the pork cutout value had risen by 96 cents following a midday surge, standing at $95.77 per cwt. Though the loin, butt, and rib primals registered lower prices, the belly primal saw a significant increase, rising by $7.73. The USDA estimated this week’s Federally inspected hog slaughter at 2.52 million head, marking an increase of 40,000 head from the previous week, and up 111,777 head compared to the same week last year.
April 25 Hogs closed at $87.375, unchanged.
May 25 Hogs closed at $85.125, down $3.450.
June 25 Hogs closed at $91.550, down $4.000.
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 presented are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
