Lean hog futures are rebounding after experiencing limit losses on Monday, with midday contracts rising between $1.02 and $3.47 as expanded limits of $6 come into play. The national average base hog price was not reported due to low trading volume, but the CME Lean Hog Index showed a slight increase to $83.77. Notably, the tariff threats impacting trade with Mexico and Canada have subsided, allowing pork markets to sidestep recent retaliatory actions from China.
The USDA reported a higher FOB plant pork cutout value of $94.59 per cwt, reflecting a 78-cent increase, although belly cuts were the only primal to decline. Monday’s federally inspected hog slaughter was estimated at 491,000 head, surpassing both the previous Monday’s count and last year’s figures.
Market professionals should monitor the lean hog futures closely, as the current price recovery may signal a shift in sentiment, particularly if trade tensions remain stable and slaughter numbers continue to rise.
Source: nasdaq.com