Lean Hog Futures Rise Amid Tariff Concerns

Prices Increase as Market Adjusts to Economic Developments

Lean hog futures saw gains ranging from 27 to 57 cents on Wednesday. The national average base hog negotiated price increased to $81.26, marking a rise of $1.51 from the previous day. Furthermore, the CME Lean Hog Index stood at $81.46 as of January 20, reflecting a slight uptick of 6 cents from the day before.

The market reacted to recent political developments as President Trump announced possible tariffs. Following a 25% threat to Mexico and Canada, he introduced a start date of February 1 for prospective 10% tariffs on China.

In related market data, the USDA’s FOB plant pork cutout value decreased by 65 cents to $90.17 per cwt in Wednesday’s PM report. Meanwhile, the federally inspected hog slaughter for Wednesday reached 444,000 head, bringing the week’s total to 1.348 million head. This figure is down 99,000 head from last week and 103,582 head compared to the same week last year.

Feb 25 Hogs closed at $81.475, up $0.275.

Apr 25 Hogs closed at $87.275, up $0.575.

May 25 Hogs closed at $92.000, up $0.575.

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 herein are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.