Lean Hog Futures Show Gains Amid Trade Negotiations

Lean hog futures experienced notable gains on Monday, with contract prices increasing between 35 cents and $2.05. The USDA reported a national average base hog negotiated price of $95.29 in the afternoon, marking an increase of $0.82. However, the CME Lean Hog Index fell by 8 cents on May 8, closing at $89.99.

Trade Developments Impacting Market Sentiment

Progress was made in US-China trade discussions, as both countries announced a temporary tariff reduction of 115% for 90 days. The US has decreased its tariff on Chinese goods to 30%, and China responded by lowering its rate to 10%. This development is perceived positively, especially following recent pork cancellations.

Pork Cutout Values and Slaughter Estimates

On Monday afternoon, the FOB plant pork cutout value decreased by $1.32 on a carcass basis, settling at $96.51. The belly was the only primal cut showing a price increase. The USDA’s estimated federally inspected hog slaughter for Monday stood at 466,000 head. This figure represents a decline of 16,000 head from the previous Monday, though it is up by 1,504 head compared to the same Monday last year.

Market Closing Prices for Hog Futures

May 25 Hogs closed at $90.725, an increase of $0.350.

Jun 25 Hogs closed at $98.300, up by $0.725.

Jul 25 Hogs closed at $102.475, reflecting a significant rise of $2.050.

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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