Lean Hogs Futures Market News and Commentary
Wednesday trading has lean hog futures locked limit lower. The CME Lean Hog Index for March 30th was $65.15, down 41 cents. That is an even more substantial premium to futures. The National Average Base Hog price was down by $4.86 to $48.32. The Pork Carcass Cutout Value was $63.09 cwt. which was down $1.95 this morning. Belly cuts, which continue to post record lows, were quoted at $34.08 cwt.! Demand lower prices at the grocery store! The US ag attaché in Beijing noted that Chinese importers have applied for, received, and are using tariff exemptions for U.S. pork. The exemptions were on section 301 tariffs, while section 232 (25% beginning April 2018) are still in effect. US pork is very competitive due to elevated Chinese internal prices. USDA estimated Tuesday’s FI hog slaughter at 493,000 head. WTD slaughter was estimated 9,000 head below last week’s pace.
Apr 20 Hogs are at $49.200, down $3.000,
May 20 Hogs are at $49.975, down $3.000