Lean Hog Futures Decline, But National Average Price Sees Minor Gain

Market Snapshot on Lean Hogs

On Tuesday, lean hog futures experienced a drop ranging from 67 cents to $1.72, while February futures managed to hold steady with a 7-cent gain. A few deferred contracts for fall delivery registered increases between 45 to 70 cents. The national average base price for hogs negotiated on Tuesday afternoon was reported at $77.75, a rise of 58 cents from the previous day. The CME Lean Hog Index stood at $81.40 as of January 17, reflecting a 12-cent increase from the day before.

Trade Tensions Ease as Tariff Plans Loom

In related news, President Trump indicated a softer stance on tariffs during a recent announcement. He postponed the implementation of planned tariffs to reassess trade agreements with China, Canada, and Mexico. However, a potential start date of February 1 for a 25% tariff on imports from Mexico and Canada was mentioned.

Pork Cutout Values and Slaughter Figures

According to the USDA, the FOB plant pork cutout value fell by $1.49 in the Tuesday PM report, settling at $90.82 per hundredweight. While the belly cuts saw an increase, most other cuts reported lower values. Additionally, federally inspected hog slaughter for Tuesday totaled 489,000 head, bringing the week-to-date figure to 963,000 head. This figure is 52,000 head lower than the previous week and down by 60,746 head compared to the same week last year.

Current Lean Hog Future Prices

Feb 25 Hogs closed at $81.200, up $0.075.

Apr 25 Hogs closed at $86.700, down $1.625.

May 25 Hogs closed at $91.425, down $1.675.

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
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